EMC - Interim / Quarterly Report 2020

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT JUNE 30, 2020 AND 2019

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Evergreen Marine Corporation (Taiwan) Ltd.

Introduction

We have reviewed the accompanying consolidated balance sheets of Evergreen Marine Corporation (Taiwan) Ltd. and subsidiaries (the “Group”) as at June 30, 2020 and 2019, and the related consolidated statements of comprehensive income for the three-month and six-month periods then ended as well as the consolidated statements of changes in equity and of cash flows for the six-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Basis for Qualified Conclusion

As explained in Note 6(7), we did not review the financial statements of certain investments accounted for using equity method, which statements reflect investments accounted for using equity method of NT$1,589,393 thousand and NT$1,911,729 thousand, constituting 0.52% and 0.64% of the consolidated total assets as of June 30, 2020 and 2019, respectively, and comprehensive income and loss under the equity method of NT$32,833 thousand, NT$35,331 thousand, NT$55,784 thousand and NT$66,019 thousand, constituting 0.84%, (16.58%), 2.72% and 15.78% of the consolidated total comprehensive income and loss for the three-month and six-month periods then ended. These amounts and the related information disclosed in Note 13 were based on the unreviewed financial statements of such investee companies.

Qualified Conclusion

Based on our reviews and the reports of other independent accountants, except for the possible effects on the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain investments accounted for using equity method and the related information disclosed in Note 13 been reviewed by independent accountants as explained in the preceding paragraph, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2020 and 2019, and of its consolidated financial performance for the three-month and six-month periods then ended and its consolidated cash flows for the six-month periods then ended in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

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Other Matter – Review Reports of Other Independent Accountants

We did not review the financial statements of certain consolidated subsidiaries and investments accounted for using equity method. Those financial statements were reviewed by other independent accountants, whose reports thereon have been furnished to us, and our report expressed herein, insofar as it relates to the amounts included in the financial statements and the information disclosed in Note 13 was based solely on the review reports of other independent accountants. These consolidated subsidiaries reflect total assets of NT$61,198,837 thousand and NT$65,620,826 thousand, constituting 19.92% and 21.81% of the consolidated total assets as at June 30, 2020 and 2019, and total operating revenues of NT$8,672,549 thousand, NT$10,379,442 thousand, NT$16,754,411 thousand and NT$21,096,388 thousand, constituting 19.77%, 22.03%, 19.18% and 22.73% of the consolidated total operating revenues for the three-month and six-month periods then ended. The investments accounted for using equity method amounted to NT$17,439,601 thousand and NT$16,921,381 thousand, constituting 5.68% and 5.62% of the consolidated total assets as at June 30, 2020 and 2019, and the comprehensive income and loss under equity method was NT$410,601 thousand, (NT$331,280) thousand, (NT$219,985) thousand and (NT$143,973) thousand, constituting 10.49%, 155.48%, (10.74%) and (34.41%) of the consolidated total comprehensive income and loss for the three-month and six-month periods then ended.

Lee, Hsiu-Ling Chih, Ping-Chiun

For and on behalf of PricewaterhouseCoopers, Taiwan August 13, 2020

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)

Assets	Notes	June 30, 2020	December 31, 2019 AMOUNT % `$` `37,871,889` `12` `2,018,536` `1` `1,693,497` `1` `129,545` `-` `13,979,251` `5` `780,562` `-` `283,739` `-` `743,540` `-` `381,933` `-` `4,547,919` `1` `1,500,038` `1` `2,368,627` `1` `66,299,076` `22` `1,719,423` `-` `100,000` `-` `29,400,925` `10` `108,393,511` `35` `82,624,186` `27` `5,455,070` `2` `1,929,667` `1` `1,035,398` `-` `9,638,382` `3` `240,296,562` `78` `$` `306,595,638` `100`	June 30, 2019
		AMOUNT `$` `38,258,732` `662,480` `1,186,338` `95,124` `14,062,290` `583,491` `147,603` `1,274,701` `350,395` `2,645,638` `1,059,538` `3,951,942` `64,278,272` `1,458,417` `100,000` `28,408,668` `112,546,416` `79,168,111` `5,291,466` `1,755,156` `885,650` `13,382,179` `242,996,063` `$` `307,274,335`	AMOUNT `$` `37,871,889` `2,018,536` `1,693,497` `129,545` `13,979,251` `780,562` `283,739` `743,540` `381,933` `4,547,919` `1,500,038` `2,368,627` `66,299,076` `1,719,423` `100,000` `29,400,925` `108,393,511` `82,624,186` `5,455,070` `1,929,667` `1,035,398` `9,638,382` `240,296,562` `$` `306,595,638`	AMOUNT `$` `37,163,150` `2,118,823` `1,654,853` `90,183` `14,463,707` `823,973` `215,050` `1,280,439` `245,415` `4,749,513` `1,245,258` `3,620,430` `67,670,794` `1,897,715` `100,000` `28,265,389` `107,955,281` `78,441,042` `5,825,713` `2,143,739` `905,941` `7,664,041` `233,198,861` `$` `300,869,655`	%
Current assets 1100 Cash and cash equivalents 1136 Current financial assets at amortised cost, net 1140 Current contract assets 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable, net - related parties 1200 Other receivables 1210 Other receivables - related parties 1220 Current income tax assets 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost, net 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Non-current assets 1XXX Total assets	6(1) 6(3) and 8 6(21) 6(4) 6(4) 6(4) and 7 7 6(5) 6(6) and 8 6(2) 6(3) 6(7) 6(8), 8 and 9 6(9) 6(10) and 8 6(4)(11) and 8				`12` `1` `1` `-` `5` `-` `-` `-` `-` `2` `-` `1`
					`22`
					`1` `-` `9` `36` `26` `2` `1` `-` `3`
					`78`
					`100`

(Continued)

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2020 and 2019 are reviewed, not audited)

Liabilities and Equity	Notes	June 30, 2020	December 31, 2019 AMOUNT % `$` `1,861,026` `1` `2,213,538` `1` `-` `-` `16,169,710` `5` `411,102` `-` `4,406,879` `2` `706,239` `-` `841,265` `-` `9,075,576` `3` `27,764,309` `9` `63,449,644 21` `18,327,916` `6` `10,000,000` `3` `83,859,972 27` `2,027,378` `1` `51,967,317 17` `3,368,565` `1` `169,551,148 55` `233,000,792 76` `48,129,738 16` `11,407,437` `4` `5,714,940` `2` `3,659,042` `1` `1,134,622` `-` `70,045,779 23` `3,549,067` `1` `73,594,846 24` `$` `306,595,638 100`	June 30, 2019
		AMOUNT `$` `1,904,770` `2,492,427` `15,982` `15,036,556` `486,484` `4,835,858` `186,632` `645,731` `8,840,936` `33,388,190` `67,833,566` `16,945,708` `6,000,000` `85,663,757` `2,047,612` `50,221,565` `3,255,036` `164,133,678` `231,967,244` `48,129,738` `11,408,494` `5,714,940` `6,412,845` `169,209` `71,835,226` `3,471,865` `75,307,091` `$` `307,274,335`	AMOUNT `$` `1,861,026` `2,213,538` `-` `16,169,710` `411,102` `4,406,879` `706,239` `841,265` `9,075,576` `27,764,309` `63,449,644` `18,327,916` `10,000,000` `83,859,972` `2,027,378` `51,967,317` `3,368,565` `169,551,148` `233,000,792` `48,129,738` `11,407,437` `5,714,940` `3,659,042` `1,134,622` `70,045,779` `3,549,067` `73,594,846` `$` `306,595,638`	AMOUNT `$` `1,635,308` `2,166,031` `-` `17,047,282` `245,879` `5,620,741` `718,657` `647,241` `9,826,753` `26,170,550` `64,078,442` `14,377,086` `10,000,000` `84,726,820` `1,917,203` `51,105,445` `3,275,658` `165,402,212` `229,480,654` `45,129,738` `11,050,221` `5,714,940` `3,952,055` `1,663,843` `67,510,797` `3,878,204` `71,389,001` `$` `300,869,655`	%
Current liabilities 2126 Current financial liabilities for hedging 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Current lease liabilities 2300 Other current liabilities 21XX Current liabilities Non-current liabilities 2511 Non-current financial liabilities for hedging 2530 Corporate bonds payable 2540 Long-term loans 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Non-current liabilities 2XXX Total liabilities Equity attributable to owners of the parent Capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant Contingent Liabilities And Unrecognized Contract Commitments Significant Events After The Balance Sheet Date 3X2X Total liabilities and equity	6(9) and 7 6(21) 7 7 6(9) and 7 6(12) 6(9) and 7 6(13) 6(14) 6(9) and 7 6(15)(16) 6(17) 6(18) 6(19) 6(20) 9 11				`-` `1` `-` `6` `-` `2` `-` `-` `3` `9`
					`21`
					`5` `3` `28` `1` `17` `1`
					`55`
					`76`
					`15` `4` `2` `1` `1`
					`23` `1`
					`24`
					`100`

The accompanying notes are an integral part of these consolidated financial statements.

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except earnings (loss) per share) (Reviewed, not audited)

Xk7 Items	Notes	Three months ended June 30	Three months ended June 30
		2020	2019
4000 Operating revenue 5000 Operating costs 5900 Gross profit 5910 Unrealized (profit) loss from sales 5920 Realized profit on from sales 5950 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6450 Impairment loss (impairment gain and reversal of impairment loss) determined in accordance with IFRS 9 6000 Operating expenses 6500 Other gains - net 6900 Operating profit Other non-operating revenue and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of loss of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit (loss) before income tax 7950 Income tax expense 8200 Profit (loss) for the period

(Continued)

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except earnings (loss) per share)

(Reviewed, not audited)

Items	Three months ended June 30	Three months ended June 30	Six months ended June 30	Six months ended June 30
	2020	2019	2020	2019
					%
Other comprehensive income (loss) Components of other comprehensive income that will not be reclassified to profit or loss 8316 Unrealised gains (losses) on valuation of investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Exchange differences on translating the financial statements of foreign operations 8368 Gains (losses) on hedging instrument 8370 Share of other comprehensive income (loss) of associates and joint ventures accounted for using equity method 8399 Income tax relating to the components of other comprehensive income (loss) 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive (loss) income for the period, net of income tax 8500 Total comprehensive income (loss) for the period Profit (loss), attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income (loss) attributable to: 8710 Owners of the parent 8720 Non-controlling interest Basic earnings (loss) per share (in dollars) 9750 Basic earnings (loss) per share 9850 Diluted earnings (loss) per share					`-` `-` `-`
					`-`
					`-` `-` `-` `-`
					`-`
					`-`
					`-`
					`-`
					`-`
					`-`
					`-`
					`0.05`
		`$`		`$`	`0.05`

The accompanying notes are an integral part of these consolidated financial statements.

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

Notes				Equityattributable t	Equityattributable t	o	owners of theparent				Non-controlling interest	Total equity
	Common stock	Capital surplus, additional paid-in capital	Retained	earnings				Other equityinterest		Total
			Legal reserve		Unappropriated retained earnings	d	Financial statements translation ifferences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income	Gains (losses) on effective portion of cash flow hedges
6(20) 6(20) 6(18)(20) 6(20) 6(20) 6(18)(20) 6(18)	`$` `45,129,738` `-` `-` `-` `-` `-` `-` `$` `45,129,738` `$` `48,129,738` `-` `-` `-` `-` `-` `-` `$` `48,129,738`	`$` `11,059,145` `-` `-` `-` `-` `(` `6,230` `)` `(` `2,694` `)` `$` `11,050,221` `$` `11,407,437` `-` `-` `-` `1,019` `38` `-` `$` `11,408,494`	`$` `5,685,548` `-` `-` `-` `29,392` `-` `-` `$` `5,714,940` `$` `5,714,940` `-` `-` `-` `-` `-` `-` `$` `5,714,940`		`$ 3,776,643` `204,806` `-` `204,806` `(` `29,392` `)` `(` `2` `)` `-` `$ 3,952,055` `$ 3,659,042` `2,750,779` `3,024` `2,753,803` `-` `-` `-` `$ 6,412,845`		`$` `17,580` `-` `463,496` `463,496` `-` `-` `-` `$` `481,076` `($` `856,773 )` `-` `(` `992,000 )` `(` `992,000 )` `-` `-` `-` `($` `1,848,773 )`	`$` `1,234,225` `-` `275,037` `275,037` `-` `2` `-` `$` `1,509,264` `$` `1,411,638` `-` `(` `323,514 )` `(` `323,514 )` `-` `-` `-` `$` `1,088,124`	`(` `$` `58,649 )` `-` `(` `267,848 )` `(` `267,848 )` `-` `-` `-` `(` `$` `326,497 )` `$` `579,757` `-` `350,101` `350,101` `-` `-` `-` `$` `929,858`	`$` `66,844,230` `204,806` `470,685` `675,491` `-` `(` `6,230 )` `(` `2,694 )` `$` `67,510,797` `$` `70,045,779` `2,750,779` `(` `962,389 )` `1,788,390` `1,019` `38` `-` `$` `71,835,226`	`$` `4,123,606` `(` `188,427 )` `(` `68,698 )` `(` `257,125 )` `-` `-` `11,723` `$` `3,878,204` `$` `3,549,067` `358,904` `(` `99,140 )` `259,764` `-` `-` `(` `336,966 )` `$` `3,471,865`	`$` `70,967,836` `16,379` `401,987` `418,366` `-` `(` `6,230` `)` `9,029` `$` `71,389,001` `$` `73,594,846` `3,109,683` `(` `1,061,529` `)` `2,048,154` `1,019` `38` `(` `336,966` `)` `$` `75,307,091`

The accompanying notes are an integral part of these consolidated financial statements.

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Income and expenses having no effect on cash flows
Depreciation

Amortization

Expected credit gain

Rental expense
Other income
Interest income

Interest expense

Dividend income

Share of profit of associates and joint ventures accounted for
using equity method
Gains arising from lease modification

Net gain on disposal of property, plant and equipment

Net gain on disposal of right-of-use assets

Net gain on disposal of investments

Realized income with affliated companies
Unrealized loss with affliated companies
Changes in assets/liabilities relating to operating activities
Changes in operating assets
Financial assets at fair value through profit or loss
Current contract assets
Notes receivable, net
Accounts receivable, net
Accounts receivable, net - related parties
Other receivables
Other receivables - related parties
Inventories
Prepayments
Other current assets
Other non-current assets
Net changes in liabilities relating to operating activities
Current contract liabilities
Notes payable
Accounts payable
Accounts payable - related parties
Other payables
Other payables - related parties
Other current liabilities
Other non-current liabilities
Cash inflow generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows from operating activities Six-monthperiods ended June 30
Notes
2020
2019
$
3,670,717 $
543,965
6(8)(9)(10)(25)(27)
10,497,210
9,962,521
6(27)
153,654
156,742
12(2)
(
2,834 ) (
13,778 )
(
1,540 )
-
(
368 )
-
6(23)
(
225,471 ) (
385,574 )
6(26)
2,550,839
2,774,882
6(24)
(
73,247 ) (
89,638 )
69,059 (
275,017 )
6(25)
(
465 ) (
2,306 )
6(22)
1,932 (
357,520 )
6(25)
(
33,677 ) (
14,158 )
6(25)
(
161 ) (
22 )
(
5,417 ) (
6,396 )
(
2,370 ) (
12,207 )
-
189
483,272
604,444
32,030
65,603
(
337,422 )
709,736
184,318 (
316,708 )
130,949
675,434
(
168,851 ) (
425,594 )
1,836,404
391,875
417,402
412,752
(
1,642,732 ) (
711,963 )
(
408 ) (
3,171 )
309,784
378,668
15,982
-
(
902,026 ) (
2,909,439 )
81,459 (
14,146 )
147,903
254,432
8,244 (
32,702 )
(
614,116 ) (
22,184 )
(
28,203 ) (
27,759 )
16,551,850
11,310,961
225,471
385,574
(
2,785,742 ) (
2,924,024 )
(
585,626 ) (
812,920 )
13,405,953
7,959,591

(Continued)

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EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in financial assets at amortised cost
Decrease (Increase) in other receivables - related parties
Acquisition of investments accounted for using equity method
Proceeds from disposal of investments accounted for using equity
method
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Acquisition of right-of-use assets
Proceeds from disposal of right-of-use assets
Acquisition of intangible assets
Increase in guarantee deposits paid
Increase in other non-current assets

Effect of initial consolidation of subsidiaries
Cash dividend received
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in short-term loans
Decrease in short-term loans
Decrease in other payables - related parties
Increase in long-term loans

Decrease in long-term loans

Payments of lease liabilities

Net change in non-controlling interest
Decrease in guarantee deposits received

Other financing activities
Net cash flows (used in) from financing activities
Effect of exchange rate changes
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Six-monthperiods ended June 30
Notes
2020
2019
$
1,351,731 $
546,785
73,607 (
253,442 )
- (
512,708 )
148,573
-
6(32)
(
3,658,661 ) (
3,222,746 )
783,040
889,392
(
10,921 )
-
54,433
75,592
(
9,727 ) (
14,005 )
(
6,949 ) (
965 )
6(32)
(
10,378,323 ) (
5,754,666 )
4,082
5,648
187,159
896,087
(
11,461,956 ) (
7,345,028 )
3,262,200
100,000
(
3,262,200 ) (
100,000 )
(
515,190 ) (
446,746 )
6(33)
17,421,211
16,232,472
6(33)
(
11,956,234 ) (
9,666,687 )
6(9)(33)
(
5,693,482 ) (
5,450,061 )
(
336,966 )
9,029
6(33)
(
39,553 ) (
9,719 )
38
-
(
1,120,176 )
668,288
(
436,978 )
43,664
386,843
1,326,515
37,871,889
35,836,635
$
38,258,732 $
37,163,150

The accompanying notes are an integral part of these consolidated financial statements.

~11~

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Expressed in thousands of New Taiwan Dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

Evergreen Marine Corporation (Taiwan) Ltd. (the “Company”) was established in the Republic of China. The Company and its subsidiaries (collectively referred herein as the “Group”) are mainly engaged in domestic and international marine transportation, shipping agency services, and the distribution of containers. The Company was approved by the Securities and Futures Bureau (SFB), Financial Supervisory Commission, Executive Yuan, R.O.C. to be a public company on November 2, 1982 and was further approved by the SFB to be a listed company on July 6, 1987. The Company’s shares have been publicly traded on the Taiwan Stock Exchange since September 21, 1987.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised by the Board of Directors on August 13, 2020.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by FSC effective from 2020 are as follows:

New Standards,Interpretations and Amendments Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of material’ Amendments to IFRS 3, ‘Definition of a business’ Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark reform’ Amendment to IFRS 16, ‘Covid-19-related rent concessions’	Effective date by International Accounting Standards Board
	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

A. Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of material’

The amendments clarify the definition of material that information is material if omitting, misstating or obscuring it could reasonably be expected to influence the decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.

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B. Amendments to IFRS 3, ‘Definition of a business’

The amendments clarify the definition of a business that to be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together; narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by removing the reference to an ability to reduce costs. Remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs. Besides, add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is not a business. Related impact assessment is provided in Note 4(3).

C. Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark reform’

The reliefs relate to hedge accounting and have the effect that IBOR reform should not generally cause hedge accounting to terminate. Also, the amendment requires disclosure about how the entity is impacted by IBOR reform and is managing the transition process.

D. Amendment to IFRS 16, ‘Covid-19-related rent concessions’

This amendment provides a practical expedient for lessees from assessing whether a rent concession related to COVID-19, and that meets all of the following conditions, is a lease modification:

(a) Changes in lease payments result in the revised consideration for the lease that is substantially
the same as, or less than, the consideration for the lease immediately preceding the change;
(b) Any reduction in lease payments affects only payments originally due on or before June 30 2021; and
(c) There is no substantive change to other terms and conditions of the lease.

Related impact assessment is provided in Note 6(9).

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

None.

(3) Effect of IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed by the FSC are as follows:
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts'	January 1, 2021 January 1, 2022 To be determined by International Accounting Standards Board January 1, 2021 January 1, 2023

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	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2022
current’
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before	January 1, 2022
intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

A. Amendments to IFRS 3, ‘Reference to the conceptual framework’

The amendments were made to IFRS 3, 'Business combinations' to update the references to the 2018 Conceptual Framework for Financial Reporting, in determining what constitutes an asset or a liability in a business combination. In addition, the amendments added an exception in IFRS 3 for the recognition of liabilities and contingent liabilities. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should instead refer to IAS 37, 'Provisions, Contingent Liabilities and Contingent Assets' or IFRIC 21, 'Levies', rather than the 2018 Conceptual Framework. The amendments also confirmed that contingent assets, as defined in IAS 37, should not be recognised by the acquirer at the acquisition date.

B. Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’
The amendments resolve a current inconsistency between IFRS 10 and IAS 28. The gain or loss resulting from a transaction that involves sales or contribution of assets between an investor and its associates or joint ventures is recognised either in full or partially depending on the nature of the assets sold or contributed:
(a) If sales or contributions of assets constitute a ‘business’, the full gain or loss is recognised;
(b) If sales or contributions of assets do not constitute a ‘business’, the partial gain or loss is recognised only to the extent of unrelated investors’ interests in the associate or joint venture.
C. Amendments to IAS 1, ‘Classification of liabilities as current or non-current’
The amendments clarify that classification of liabilities depends on the rights that exist at the end of the reporting period. An entity shall classify a liability as current when it does not have a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. Also, the amendments define ‘settlement’ as the extinguishment of a liability with cash, other economic resources or an entity’s own equity instruments.

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D. Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ This amendment to IAS 16 prohibits an entity from deducting from the cost of an item of property, plant and equipment any proceeds received from selling items produced while the entity is preparing the asset for its intended use (for example, the proceeds from selling samples produced when testing a machine to see if it is functioning properly). The proceeds from selling such samples and the costs relating to items produced are now recognised in profit or loss. This amendment also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment.
E. Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’ The amendments clarify that the cost of fulfilling a contract comprises the costs that relate directly to the contract. Costs that relate directly to a contract consist of the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts.

The impact of the above standards and interpretations is still under management's assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the“Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim Financial Reporting’ as endorsed by the FSC.

(2) Basis of preparation
A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
- (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.
- (b) Financial assets at fair value through other comprehensive income.
- (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

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(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.
(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

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B. Subsidiaries included in the consolidated financial statements:

Name of Investor The Company The Company The Company The Company The Company Peony Peony Peony Peony Peony Peony Peony Peony	Name of Subsidiary TTSC Peony ETS EGH EIL GMS Clove EMU EHIC(M) Armand N.V. KTIL MBPI MBT	Main business activities Cargo loading and discharging Investments in transport-related business Terminal Services Container shipping and agency services dealing with port formalities Agency services dealing with port formalities Container shipping Investments in container yards and port terminals Container shipping Manufacturing of dry steel containers and container parts Investments in container yards and port terminals Loading, discharging, storage, repairs and cleaning of containers Containers storage and inspections of containers at the customs house Inland transportation, repairs and cleaning of containers	Ownership (%)	June 30, 2019 55.00 100.00 94.43 79.00 - 100.00 100.00 51.00 84.44 70.00 20.00 95.03 17.39	Description
			June 30, December 31, 2020 2019 55.00 55.00 100.00 100.00 94.43 94.43 79.00 79.00 59.00 59.00 100.00 100.00 100.00 100.00 51.00 51.00 84.44 84.44 - 70.00 20.00 20.00 95.03 95.03 17.39 17.39
					(b) (f)

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----- Start of picture text -----

Ownership (%)
Name of Name of Main business June 30, December 31, June 30,
Investor Subsidiary activities 2020 2019 2019 Description
----- End of picture text -----

Name of Investor	Name of Subsidiary	Main business activities	June 30, 2020	December 31, 2019	June 30, 2019 Description
Peony	EGK	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	EGT	Agency services dealing	85.00	85.00	85.00
		with port formalities
Peony	EGI	Agency services dealing	99.99	99.99	99.99
		with port formalities
Peony	EMA	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	EIT	Agency services dealing	55.00	55.00	55.00
		with port formalities
Peony	EES	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	ERU	Agency services dealing	51.00	51.00	51.00
		with port formalities
Peony	EEU	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	ESA	Agency services dealing	55.00	55.00	55.00
		with port formalities
Peony	EGB	Real estate leasing	95.00	95.00	95.00
Peony	EGM	Agency services dealing	100.00	100.00	100.00
		with port formalities
Peony	EGH	Container shipping and	1.00	1.00	1.00
		agency services dealing
		with port formalities
Peony	EGV	Agency services dealing	100.00	100.00	100.00
		with port formalities
EGH	Ever shine	Management consultancy	100.00	100.00	100.00
	(Shanghai)	and self-owned property
		leasing
EGH	Ever shine	Management consultancy	100.00	100.00	100.00
	(Ningbo)	and self-owned property
		leasing

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Investor	Subsidiary	activities	2020	2019	2019	Description
EGH	EKH	Agency services dealing	100.00	100.00	100.00
		with port formalities
EGH	EPE	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	ECO	Agency services dealing	75.00	75.00	75.00
		with port formalities
EGH	ECL	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	EMX	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	EGRC	Agency services dealing	60.00	60.00	60.00
		with port formalities
EGH	HMH	Agency services dealing	-	-	-	(a)
		with port formalities
EGH	Ever shine	Management consultancy	100.00	100.00	100.00	(a)
	(Shenzhen)	and self-owned property
		leasing
EGH	Ever shine	Management consultancy	100.00	100.00	100.00	(a)
	(Qingdao)	and self-owned property
		leasing
EGH	ECN	Agency services dealing	52.00	52.00	49.00	(a)、(c)
		with port formalities
EGH	KTIL	Loading, discharging,	20.00	20.00	20.00	(a)
		storage, repairs and
		cleaning of containers
EGH	EIL	Agency services dealing	1.00	1.00	-	(b)
		with port formalities
EGH	ELA	Management consultancy	100.00	16.50	16.50	(d)
EGH	EBR	Agency services dealing	60.00	-	-	(e)
		with port formalities

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Name of Investor	Name of Subsidiary	Main business activities	June 30, 2020	December 31, 2019	June 30, 2019	Description
ETS	Whitney	Investments and	100.00	100.00	100.00
		leases of operating
		machinery and
		equipment of port
		terminals
EMU	KTIL	Loading, discharging,	20.00	20.00	20.00
		storage, repairs and
		cleaning of containers
Clove	ETS	Terminal Services	5.57	5.57	5.57
Armand	Armand	Investments in container	0.00	100.00	100.00	(g)
N.V.	B.V.	yards and port terminals
MBPI	MBT	Inland transportation,	72.95	72.95	72.95
		repairs and cleaning
		of containers

(a) On August 13, 2018, shareholders of the subsidiary, EGH, during their meeting resolved to make an equity transaction. EGH acquired a 100% equity interest of HMH and its indirect investees, wholly-owned Ever Shine (Shenzhen), wholly-owned Ever Shine (Qingdao), 49% owned MAC and 20% owned KTIL from other related party, Chestnut Estate B.V.. The transaction amount was US $105,808. The applicable transactions were approved by the Investment Commission of the Ministry of Economic Affairs. The acquisition date was December 14, 2018. On December 21, 2018, shareholders of EGH during their meeting resolved to merge its subsidiary, HMH. EGH will be the surviving company and HMH will be dissolved after the merger. The liquidation process of HMH was completed by January 10, 2020.
(b) On March 22, 2019, the Board of Directors of the Company and the subsidiary, EGH, resolved to establish a subsidiary, EIL, in Israel. The capital for establishment is ILS 1,800 (approx. USD 500), and the subsidiary is primarily engaged in container shipping and agency services dealing with port formalities.
(c) On October 28, 2019, shareholders of the subsidiary, EGH, during their meeting resolved to make an equity transaction. EGH acquired the 3% ownership of MAC from Ningbo Jiang Dong Ever Elite Investment Consulting Ltd.. The transaction amount was CNY $150. The applicable transactions were approved by the Investment Commission of the Ministry of Economic Affairs. The acquisition date was December 10, 2019.

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(d) On December 20, 2019, the Board of Directors of the subsidiary, EGH, approved the ELA equity transaction and acquired 83.50% equity interests from EMC 、 EMU and other related parties, the transaction date was March 1, 2020 and the transaction amount was USD 544. After the transaction, the shareholding ratio which was the equity of ELA held by EGH increase from 16.50% to 100%. The company primarily engaged in management consultancy in Latin America. Because the transaction did not meet the requirements of IFRS 3, ‘Definition of a business’, the accounting treatment of this equity transaction would be accounted as acquired assets and liabilities based on the principle.
(e) On August 13, 2019, the Board of Directors of the subsidiary, EGH, approved to establish a subsidiary, EBR, in Brazil, the initial capital amounted to BRL 1,200 (approx. USD 247), the date of the capital injection completion was March 16, 2020, this company primarily engaged in freight and shipping agent.
(f) On March 18, 2020, the shareholders of the subsidiary, Armand N.V., during their meeting approved the accelerated liquidation. At the same day, the investment amount returned to the shareholder, Peony Investment S.A, and non-controlling interests amounted to $339,638 (approx. USD 11,237) and $145,909 (approx. USD 4,827), respectively, based on local regulations. The liquidation process of Armand N.V. was completed by June 30, 2020.
(g) On March 17, 2020, the shareholders of the subsidiary, Armand B.V., during their meeting approved the accelerated liquidation. At the same day, the investment amount returned to Armand N.V. amounted to $491,294 (approx. USD16,257) based on local regulations. The liquidation process of Armand B.V. was completed by June 25, 2020.
C. Subsidiary not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: As of June 30, 2019, December 31, 2019 and June 30, 2020, the non-controlling interest amounted to $3,878,204, $3,549,067 and $3,471,865, respectively. The information of non-controlling interest and respective subsidiaries is as follows:

Non-controlling interest

Name of subsidiary	Principal place ofbusiness U.K. Hong Kong	Ownership Amount (%) 830,366 $ 49% 2,073,073 20% June 30,2020	Ownership Amount (%) 768,414 $ 49% 2,021,999 20% December31,2019	Description
		Amount 830,366 $ 2,073,073	Amount 768,414 $ 2,021,999
EMU EGH

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Name of Principal place subsidiary of business EMU U.K. EGH Hong Kong	Ownership Amount (%) Description 1,157,178 $ 49% 1,977,450 20% June 30,2019 Non-controllinginterest

Summarised financial information of the subsidiaries: Balance sheets

Balance sheets
						EMU
			June 30,2020	December31,2019				June 30,2019
Current assets		$	6,457,266		$	6,866,440	$	7,534,587
Non-current assets			44,310,045			46,043,283		48,835,466
Current liabilities	(		15,677,761)	(		16,584,869)	(	16,622,642)
Non-current liabilities	(		33,394,926)	(		34,756,663)	(	37,385,823)
Total net assets		$	1,694,624		$	1,568,191	$	2,361,588

					EGH
			June 30,2020	December31,2019			June 30,2019
Current assets		$	11,452,030	$	12,300,364	$	9,099,921
Non-current assets			32,944,372		29,181,330		27,694,228
Current liabilities	(		12,458,777)	(	12,496,762)	(	11,728,553)
Non-current liabilities	(		21,990,763)	(	19,659,040)	(	15,694,044)
Total net assets		$	9,946,862	$	9,325,892	$	9,371,552

Statements of comprehensive income

EMU

	Three-month period ended	Three-month period ended	Three-month period ended	Three-month period ended	Three-month period ended
		June 30,2020			June 30,2019
Revenue	$	9,093,521		$	10,466,207
Profit (loss) before income tax	$	810,926	($		224,640)
Income tax expense	(	6,123)	(		4,933)
Profit (loss) for the period from
continuing operations		804,803	(		229,573)
Other comprehensive income (loss),
net of tax		209	(		1,927)
Total comprehensive income (loss)
for the period	$	805,012	($		231,500)
Comprehensive income (loss)
attributable to non-controlling interest	$	394,456	($		113,435)

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			EMU	EMU	EMU
		Six-month period ended			Six-month period ended
			June 30,2020			June 30,2019
Revenue		$	17,548,751		$	21,014,448
Profit (loss) before income tax		$	172,734	($		654,954)
Income tax expense	(		13,316)	(		9,541)
Profit (loss) for the period from
continuing operations			159,418	(		664,495)
Other comprehensive loss, net of tax	(		1,240)	(		189)
Total comprehensive income (loss)
for the period		$	158,178	($		664,684)
Comprehensive income (loss)
attributable to non-controlling interest		$	77,507	($		325,695)
			EGH
	Three-month period ended			Three-month period ended
			June 30,2020			June 30,2019
Revenue		$	8,460,509		$	6,859,907
Profit (loss) before income tax		$	1,150,598	($		117,041)
Income tax expense	(		103,967)	(		133,857)
Profit (loss) for the period
from continuing operations			1,046,631	(		250,898)
Other comprehensive income, net of tax			-			-
Total comprehensive income (loss)
for the period		$	1,046,631	($		250,898)
Comprehensive income (loss)
attributable to non-controlling interest		$	209,326	($		50,180)
			EGH
		Six-month period ended			Six-month period ended
			June 30,2020			June 30,2019
Revenue		$	15,474,660		$	12,513,107
Profit before income tax		$	1,082,307		$	268,836
Income tax expense	(		148,147)	(		245,605)
Profit for the period from
continuing operations			934,160			23,231
Other comprehensive income, net of tax			-			-
Total comprehensive income
for the period		$	934,160		$	23,231
Comprehensive income
attributable to non-controlling interest		$	186,832		$	4,646

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Statements of cash flows

Statements of cash flows
			EMU
		Six-month period ended		Six-month period ended
			June 30,2020		June 30,2019
Net cash provided by operating activities		$	2,184,322	$	556,533
Net cash used in investing activities	(		883,804)	(	17,573)
Net cash used in financing activities	(		1,390,893)	(	841,211)
Effect of exchange rates on cash
and cash equivalents	(		28,407)		18,315
Decrease in cash and cash equivalents	(		118,782)	(	283,936)
Cash and cash equivalents,
beginning of period			1,610,984		1,787,358
Cash and cash equivalents,
end of period		$	1,492,202	$	1,503,422
			EGH
		Six-month period ended		Six-month period ended
			June 30,2020		June 30,2019
Net cash provided by operating activities		$	3,967,986	$	3,457,310
Net cash used in investing activities	(		2,380,134)	(	6,719,613)
Net cash (used in) provided by
financing activities	(		2,312,254)		2,460,742
Effect of exchange rates on cash
and cash equivalents	(		70,645)		28,755
Decrease in cash and cash equivalents	(		795,047)	(	772,806)
Cash and cash equivalents,
beginning of period			4,542,951		3,166,065
Cash and cash equivalents,
end of period		$	3,747,904	$	2,393,259

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Group’s presentation currency.

A. Foreign currency transactions and balances

(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise, except when deferred in other comprehensive income as qualifying cash flow hedges and qualifying net investment hedges.

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(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.
B. Translation of foreign operations
(a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- iii. All resulting exchange differences are recognised in other comprehensive income.
(b) When the foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, even when the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.
(c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.
(d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

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(5) Classification of current and non-current items

A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
(a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;
(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realised within twelve months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.
B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
(a) Liabilities that are expected to be settled within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within twelve months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits with original maturities of three months or less that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.
(7) Financial assets at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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(8) Financial assets at fair value through other comprehensive income

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:
(a) The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as other income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

(9) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:
(a) The objective of the Group’s business model is achieved by collecting contractual cash flows.
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at amortised cost are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.
D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

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(10) Notes, accounts and other receivables

A. Notes and account receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services. Receivables arising from transactions other than the sale of goods or service are classified as other receivables.
B. The short-term notes receivable, accounts receivable and other receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(11) Impairment of financial assets
For debt instruments measured at fair value through other comprehensive income and financial assets at amortised cost including accounts receivable or contract assets that have a significant financing component at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.
(12) Derecognition of financial assets

The Group derecognises a financial asset when one of the following conditions is met:

A. The contractual rights to receive cash flows from the financial asset expire.
B. The contractual rights to receive cash flows from the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.
C. The contractual rights to receive cash flows from the financial asset have been transferred; however, the Group has not retained control of the financial asset.
(13) Operating leases (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(14) Inventories
Inventories refer to fuel inventories and steel inventories. Fuel inventories are physically measured by the crew of each ship and reported back to the Head Office through telegraph for recording purposes at balance sheet date. Valuation of inventories is based on the exchange rate prevailing at balance sheet date.
The perpetual inventory system is adopted for steel inventory recognition. Steel inventories are stated at cost. The cost is determined using the weighted-average method. At the end of period, inventories are evaluated at the lower of cost or net realisable value, and the individual item approach is used in the comparison of cost and net realisable value. The calculation of net realisable value should be based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses.

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(15) Investments accounted for using equity method / associates

A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.
B. The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
C. When changes in an associate’s equity that are not recognised in profit or loss or other comprehensive income of the associate and such changes not affecting the Group’s ownership percentage of the associate, the Group recognises the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.
D. Unrealised gains and loss on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for using equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.
G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

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H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it still retains significant influence over this associate, then the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.
(16) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.
B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings 20 ~ 135 years Loading and unloading equipment 5 ~ 20 years Ships (Except for docking repair and scrubber) 18 ~ 25 years Ship (Docking repair) 2.5 ~ 5 years Ship (Scrubber) 7 ~10 years Transportation equipment 5 ~ 10 years Other equipment 2 ~ 20 years

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(17) Leasing arrangements (lessee) `－` right-of-use assets/ lease liabilities

A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:
(a) Fixed payments, less any lease incentives receivable;
(b) Variable lease payments that depend on an index or a rate; and
(c) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee; and
(d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss.

(18) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 20 ~ 60 years.

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(19) Intangible assets

A. Computer software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 years.

B. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method.

C. Customer relationship

Customer relationship arises from the business combination is measured initially at their fair values at the acquisition date. Customer relationship has a finite useful life and are amortised on a straight-line basis over their estimated useful lives of 8.05 to 10 years.

(20) Impairment of non-financial assets

The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

(21) Borrowings

A. Borrowings comprise long-term and short-term bank borrowings and other long-term and shortterm loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.
B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

(22) Accounts payable

A. Accounts payable are liabilities for purchases of raw materials, goods or services.
B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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(23) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges or financial liabilities at fair value through profit or loss. Financial liabilities that meet one of the following criteria are designated as at fair value through profit or loss at initial recognition:
(a) Hybrid (combined) contracts; or
(b) They eliminate or significantly reduce a measurement or recognition inconsistency; or
(c) They are managed and their performance is evaluated on a fair value basis, in accordance with a documented risk management policy.
B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

(24) Bonds payable

Ordinary corporate bonds issued by the Group are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

(25) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(26) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(27) Hedge accounting

A. At the inception of the hedging relationship, there is formal designation and documentation of the hedging relationship and the Group’s risk management objective and strategy for undertaking the hedge. That documentation shall include identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the Group will assess whether the hedging relationship meets the hedge effectiveness requirements.
B. The Group designates the hedging relationship as follows: Cash flow hedge:
A hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability or a highly probable forecast transaction.

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C. Cash flow hedges

(a)The cash flow hedge reserve associated with the hedged item is adjusted to the lower of the following (in absolute amounts):
i. the cumulative gain or loss on the hedging instrument from inception of the hedge; and
ii. the cumulative change in fair value of the hedged item from inception of the hedge.
(b)The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income. The gain or loss on the hedging instrument relating to the ineffective portion is recognised in profit or loss.
(c)The amount that has been accumulated in the cash flow hedge reserve in accordance with item(a) is accounted for as follows:
i. If a hedged forecast transaction subsequently results in the recognition of a non-financial asset or non-financial liability, or a hedged forecast transaction for a non-financial asset or non-financial liability becomes a firm commitment for which fair value hedge accounting is applied, the Group shall remove that amount from the cash flow hedge reserve and include it directly in the initial cost or other carrying amount of the asset or liability.
ii. For cash flow hedges other than those covered by item i. above, that amount shall be reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment in the same period or periods during which the hedged expected future cash flows affect profit or loss.
iii. If that amount is a loss and the Group expects that all or a portion of that loss will not be recovered in one or more future periods, it shall immediately reclassify the amount that is not expected to be recovered into profit or loss as a reclassification adjustment.
(d) When the hedging instrument expires, or is sold, terminated, exercised or when the hedging relationship ceases to meet the qualifying criteria, if the forecast transaction is still expected to occur, the amount that has been accumulated in the cash flow hedge reserve shall remain in the cash flow hedge reserve until the forecast transaction occurs; if the forecast transaction is no longer expected to occur, the amount shall be immediately reclassified from the cash flow hedge reserve to profit or loss as a reclassification adjustment.

(28) Employee benefits

A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

B. Pensions

(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

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(b) Defined benefit plans
- i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Group uses interest rates of government bonds (at the balance sheet date) instead.
- ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.
- iii. Past service costs are recognised immediately in profit or loss.
- iv. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.
C. Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognises expense as it can no longer withdraw an offer of termination benefits or it recognises relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.
D. Employees’ compensation and directors’ remuneration Employees’ compensation and directors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

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(29) Income tax

A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
C. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.
E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.
F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.
G. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

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H. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

(30) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(31) Revenue recognition
A. Sales of services
- Revenue from delivering services is recognised under the percentage-of-completion method when the outcome of services provided can be estimated reliably. The stage of completion of a service contract is measured by the percentage of the actual services performed as of the financial reporting date to the total services to be performed. If the outcome of a service contract cannot be estimated reliably, contract revenue should be recognised only to the extent that contract costs incurred are likely to be recoverable. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.
B. Rental revenue
- The Group leases ships and shipping spaces under IFRS 16, ‘Leases’. Lease assets are classified as finance leases or operating leases based on the transferred proportion of the risks and rewards incidental to ownership of the leased asset, and recognised in revenue over the lease term.

(32) Business combinations

A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

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B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognised and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognised directly in profit or loss on the acquisition date.
(33) Operating segments

The Group’s operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision-Maker. The Chief Operating Decision-Maker is responsible for allocating resources and assessing performance of the operating segments.

CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies
None.

(2) Critical accounting estimates and assumptions

A. Revenue recognition
Revenue from freight services of the Group is recognised under the percentage-of-completion method for each vessel of which the service has been provided during the reporting period. The adjustments to the estimated amount may be required as the transit days and the freight revenue are subject to estimation.
B. Impairment assessment of tangible assets
The Group assesses impairment based on its subjective judgement and determines the separate cash flows of a specific group of assets, useful lives of assets and the future possible income and expenses arising from the assets depending on how assets are utilized and industrial characteristics. Any changes of economic circumstances or estimates due to the change of Group strategy might cause material impairment on assets in the future.
As of June 30, 2020, the Group recognised property, plant, equipment and cargo handling equipment, transport equipment and ship equipment, which are recognised in right-of-use asset, amounting to $103,481,284 and $67,298,884, respectively.

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
		June 30, 2020	December 31, 2019			June 30, 2019
Cash on hand and petty cash	$	30,939	$	28,964	$	30,769
Checking accounts and demand
deposits		8,142,358		6,903,864		7,646,771
Time deposits		30,085,435		30,939,061		29,485,610
	$	38,258,732	$	37,871,889	$	37,163,150

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The Group has no cash and cash equivalents pledged to others.

(2) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed (TSE) stocks Unlisted stocks Valuation adjustment	June 30, 2020 December 31, 2019 490,801 $ 490,801 $ 206,403 208,570 697,204 699,371 761,213 1,020,052 1,458,417 $ 1,719,423 $	June 30,2019
		490,801 $ 212,636
		703,437 1,194,278
		1,897,715 $

A. The Group has elected to classify these investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $1,458,417, $1,719,423 and $1,897,715 at June 30, 2020, December 31, 2019 and June 30, 2019 respectively.
B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Three-month period ended Three-month period ended June 30, 2020 June 30, 2019

	June 30,2020 June 30,2019	June 30,2020 June 30,2019
Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Income tax recognised in other comprehensive income Dividend income recognised in profit or loss - Held at end of period	16,190 $ 230,571 $ 3,316 $ 8,967) ($ 73,247 $ 89,638 $
		89,638 $

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Six-month period ended Six-month period ended June 30, 2020 June 30, 2019

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income ($ 254,166) $ 240,821 Income tax recognised in other comprehensive income $ 10,198 ($ 7,125) Dividend income recognised in profit or loss - Held at end of period $ 73,247 $ 89,638

C. Information relating to fair value of financial assets at fair value through other comprehensive income is provided in Note 12(3).

(3) Financial assets at amortised cost

income is provided in Note 12(3). Financial assets at amortised cost
Items Current items: Time deposits exceeding 3 months Pledged time deposits Non-current items: Financial bonds	June30,2020 December31,2019 423,185 $ 1,727,796 $ 239,295 290,740 662,480 $ 2,018,536 $ 100,000 $ 100,000 $	June 30, 2019
		1,825,075 $ 293,748
		2,118,823 $
		100,000 $

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

below:
	Three-month period ended		Three-month period ended
		June 30, 2020		June 30, 2019
Interest income	$	4,561	$	9,062
	Six-month period ended		Six-month period ended
		June 30,2020		June 30,2019
Interest income	$	23,047	$	32,087

B. As at June 30, 2020 December 31, 2019 and June 30, 2019 without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was $762,480, $2,118,536 and 2,218,823, respectively.
C. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.
D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

~40~

(4) Notes and accounts receivable

Notes and accounts receivable
			June 30,2020	December31,2019				June 30,2019
Notes receivable		$	95,133	$	129,547		$	90,185
Less: Allowance for bad debts	(		9)	(	2)	(		2)
		$	95,124	$	129,545		$	90,183
Accounts receivable (including
related parties)		$	14,655,262	$	14,772,158		$	15,303,988
Less: Allowance for bad debts	(		9,481)	(	12,345)	(		16,308)
		$	14,645,781	$	14,759,813		$	15,287,680
Overdue receivables (recorded
as other non-current assets)		$	264,667	$	269,506		$	278,585
Less: Allowance for bad debts	(		264,667)	(	269,506)	(		278,585)
		$	-	$	-		$	-

A. The ageing analysis of accounts receivable and notes receivable are as follows:

Not past due Up to 30 days 31 to 180 days Over 180 days Not past due Up to 30 days 31 to 180 days	June 30,2020 Accounts receivable 12,411,939 $ 2,030,759 141,699 335,532 14,919,929 $ June30,2020 Notesreceivable 95,133 $ - - 95,133 $	December31,2019 Accounts receivable 12,094,901 $ 2,450,297 226,960 269,506 15,041,664 $ December 31, 2019 Notesreceivable 129,547 $ - - 129,547 $	June 30,2019 Accounts receivable
			10,625,541 $ 3,501,570 1,176,877 278,585
			15,582,573 $
			June30,2019
			Notes receivable
			90,185 $ - -
			90,185 $

The above ageing analysis was based on past due date.

B. As of June 30, 2020, December 31, 2019, June 30, 2019, and January 1, 2019, the balances of receivables (including notes receivable) from contracts with customers amounted to $13,601,225, $13,084,484, $13,205,755 and $14,202,068, respectively.
C. The Group has no notes and accounts receivable held by the Group pledged to others.
D. As at June 30, 2020, December 31, 2019 and June 30, 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable were $95,124, $129,545 and $90,183, respectively; and the amount that best represents the Group’s accounts receivable were $14,645,781, $14,759,813 and$15,287,680, respectively.
E. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2).

~41~

(5) Inventories

Inventories
Other current assets Ship fuel Steel and others Ship fuel Steel and others Ship fuel Steel and others Shipowner's accounts Agency accounts Temporary debits		June30,2020
	Cost 2,294,431 $ 351,207 2,645,638 $	Allowance for valuation loss - $ - - $ December31,2019	Bookvalue
			2,294,431 $ 351,207
			2,645,638 $

	Cost 4,273,258 $ 274,661 4,547,919 $	Allowance for valuation loss - $ - - $ June 30,2019	Bookvalue
			4,273,258 $ 274,661
			4,547,919 $

	Cost 4,370,815 $ 378,698 4,749,513 $ June 30, 2020 789,879 $ 2,357,361 804,702 3,951,942 $	Allowance for valuation loss - $ - - $ December31,2019 28,957 $ 1,502,487 837,183 2,368,627 $	Bookvalue
			4,370,815 $ 378,698
			4,749,513 $
			June 30,2019
			1,357,669 $ 1,186,767 1,075,994
			3,620,430 $

(6) Other current assets

A. Shipowner’s accounts:

Temporary accounts, between the Group and other related parties – Evergreen International S.A., Gaining Enterprise S.A., Italia Marittima S.p.A., and Evergreen Marine (Singapore) Pte. Ltd. incurred due to foreign port formalities and pier rental expenses.

B. Agency accounts:

The Group entered into agency agreements with its related parties, whereby the related parties act as the Group’s agents to deal with domestic and foreign port formalities, such as arrival and departure of the Group’s ships, cargo stevedoring and forwarding, freight collection, and payment of expenses incurred in domestic and foreign ports.

C. Temporary debits are mainly subject to the account of settlements between other carriers and the OCEAN Alliance, which the Group formed in response to market competition and enhancement of global transportation network to provide better logistics services to customers with Cosco Container Lines Co., Ltd., CMA CGM, Ltd., and the Orient Overseas Container Line, Ltd. on March 31, 2017 for trading of shipping space.

~42~

(7) Investments accounted for using equity method

A. Details of long-term equity investments accounted for using equity method are set forth below:

June 30,2020 December31,2019 Evergreen International Storage and Transport Corporation 8,891,012 $ 9,039,677 $ EVA Airways Corporation 10,959,263 11,399,909 Taipei Port Container Terminal Corporation 1,481,822 1,583,427 Charng Yang Development Co., Ltd. 522,864 553,210 Luanta Investment (Netherlands) N.V. 1,849,171 1,884,647 Balsam Investment (Netherlands) N.V. 407,923 525,226 Colon Container Terminal S.A. 3,130,412 3,193,300 Others 1,166,201 1,221,529 28,408,668 $ 29,400,925 $	June 30,2019 9,010,267 $ 10,665,767 1,544,108 518,498 1,954,792 228,779 3,273,425 1,069,753
	28,265,389 $

June 30,2020
December31,2019
Evergreen International Storage
and Transport Corporation
8,891,012
$ 9,039,677
$ EVA Airways Corporation
10,959,263

11,399,909
Taipei Port Container Terminal
Corporation
1,481,822

1,583,427
Charng Yang Development Co.,
Ltd.
522,864
553,210
Luanta Investment
(Netherlands) N.V.
1,849,171
1,884,647
Balsam Investment
(Netherlands) N.V.
407,923
525,226

Colon Container Terminal S.A.
3,130,412

3,193,300
Others
1,166,201
1,221,529
28,408,668
$
29,400,925
$

June 30,2019
9,010,267
$ 10,665,767
1,544,108
518,498
1,954,792
228,779
3,273,425
1,069,753

28,265,389
$

B. Associates

(a) The basic information of the associates that are material to the Group is as follows:

Companyname	Principal place of business	Ownership(%)	Ownership(%)	Ownership(%)	Nature of relationship	Methods of measurement
Evergreen International Storage and Transport Corporation EVA Airways Corporation	TW TW	June 30, 2020	December 31,2019	June 30, 2019	With a right over 20% to vote Have a right to vote in the Board of Directors	Equity method Equity method
		40.36% 16.00%	40.36% 16.00%	40.36% 16.00%

~43~

(b) The summarised financial information of the associates that are material to the Group is as follows:

Balance sheet

follows: Balance sheet
			Evergreen InternationalStorage and TransportCorporation
			June 30,2020	December31,2019					June 30,2019
Current assets		$	5,826,424		$	6,121,815		$	5,815,106
Non-current assets			27,985,138			28,889,987			29,336,203
Current liabilities	(		3,987,072)	(		2,703,450)	(		3,202,673)
Non-current liabilities	(		7,539,570)	(		9,485,576)	(		9,152,926)
Total net assets		$	22,284,920		$	22,822,776		$	22,795,710
Share in associate's net assets		$	8,942,240		$	9,098,692		$	9,088,507
Unrealized income with
affiliated companies	(		51,228)	(		59,015)	(		78,240)
Carrying amount of the associate		$	8,891,012		$	9,039,677		$	9,010,267
			EVA Airways Corporation
			June 30,2020	December31,2019					June 30,2019
Current assets		$	58,764,144		$	77,199,776		$	78,366,845
Non-current assets			273,917,530			279,051,918			277,348,200
Current liabilities	(		58,997,524)	(		82,441,715)	(		76,813,237)
Non-current liabilities	(		198,798,761)	(		195,667,963)	(		205,687,710)
Total net assets		$	74,885,389		$	78,142,016		$	73,214,098
Share in associate's net assets		$	10,959,263		$	11,399,909		$	10,665,767

Statement of comprehensive income

Statement of comprehensive income
	Evergreen InternationalStorage and			TransportCorporation
	Three-month period ended		Three-month period ended
		June 30,2020		June 30,2019
Revenue	$	1,704,030	$	1,977,258
Profit for the period	$	205,252	$	254,346
Other comprehensive income,
net of tax		4,210		51,374
Total comprehensive income	$	209,462	$	305,720
Dividends received from associates	$	129,208	$	150,742

~44~

Evergreen International Storage and Transport Corporation

Revenue

Profit for the period

Other comprehensive (loss) income, net of tax Total comprehensive (loss) income Dividends received from associates

Six-month period ended June 30, 2020 3,492,829 $ 366,002 $ 433,956) ( 67,954) ($ 129,208 $	Six-month period ended June 30, 2019 3,895,130 $ 448,264 $ 189,952 638,216 $ 150,742 $

EVA Airways Corporation

Revenue

(Loss) profit for the period Other comprehensive income (loss), net of tax Total comprehensive income (loss) Dividends received from associates

Revenue

(Loss) profit for the period Other comprehensive income (loss), net of tax Total comprehensive (loss) income Dividends received from associates

Three-month period ended	Three-month period ended	Three-month period ended	Three-month period ended	Three-month period ended
	June30,2020			June30,2019
$	19,288,932		$	43,864,832
($	705,895)		$	284,757
	2,326,445	(		735,485)
$	1,620,550	($		450,728)
$	194,135		$	376,987
	EVA Airways		Corporation
Six-month period ended			Six-month period ended
	June 30,2020			June 30,2019
$	49,522,030		$	88,177,559
($	1,800,477)		$	2,387,247
	287,483	(		669,471)
($	1,512,994)		$	1,717,776
$	194,135		$	376,987

(c) The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarised below:

As of June 30, 2020, December 31, 2019 and June 30, 2019, the carrying amount of the Group’s individually immaterial associates amounted to $8,558,393, $8,961,339 and $8,589,355, respectively.

Income (loss) for the period Other comprehensive income, net of tax Total comprehensive (loss)	Six-month period ended Six-month period ended June 30,2020 June 30,2019 303,272 $ 303,056) ($ - - 303,272 $ 303,056) ($

~45~

C. Above stated certain investments accounted for using equity method are based on the financial statements of associates which were not reviewed by the independent accountants or reviewed by the associates’ independent accountants.
D. The fair value of the Group’s associates which have quoted market price was as follows:

June 30,2020 December31,2019 Evergreen International Storage and Transport Corporation 5,878,948 $ 6,180,433 $ EVA Airways Corporation 8,697,260 10,677,440 14,576,208 $ 16,857,873 $	June 30,2019
	6,137,364 $ 11,271,926 17,409,290 $

E. To integrate the investment structure, on November 13, 2019, the shareholders of the subsidiary, Armand B.V., during their meeting approved to dispose 9.73% equity interests of Taipei Port Container Terminal Corporation. On February 7, 2020, the Company acquired 6.81% equity interests at par value of NT$9.941 per share, consisting of 35,421 thousand shares, the transaction amounting to $352,123. Additionally, other related party, EIS, also acquired 2.92% equity interests at par value of NT$9.941 per share, consisting of 15,181 thousand shares, the transaction amounting to $150,464. After the transaction, the shareholding ratio of the Group to Taipei Port Container Terminal Corporation decreased from 30.76% to 27.84%, still valued using equity method.
F. The Board of Directors of the Company during its meeting on December 21, 2018 adopted a resolution to participate in the capital increase raised by EVA Airways Corporation amounting to 39,150 thousand shares, subscription price of NT$13 (in dollars) per share, whose total price of $508,944. In addition, the effective date was set on January 24, 2019 and after the acquisition, the Company’s share interest was decreased to 16.10%. Moreover, the Company purchased 70 thousand shares as specific person, the purchasing proceeds amounted to $700, and the share interest further decreased to 16% as of June 30, 2020 after many conversions from corporate bonds to stocks took place in EVA Airways Corporation for the year ended December 31, 2019.
G. On November 10, 2019, the Board of Directors of the subsidiary, Peony, has resolved to participate in the capital increase of the investee, Balsam Investment (Netherlands) N.V., as the original shareholder. The amount of capital increase was USD 24,500. After the capital increase, Peony’s shareholding ratio is still 49%.

~46~

(8) Property, plant and equipment, net

At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions Disposals Reclassifications Depreciation Net exchange differences Closing net book amount as at June 30 At June 30 Cost Accumulated depreciation							2020					Total
		Land	Buildings	Machinery equipment	Loading and unloading equipment	Computer and communication equipment	Transportation equipment	Ships	Office equipment	Leasehold improvements	Others
	823,377 $ - 823,377 $ 823,377 $ - - 18,209 - 10,093) ( 831,493 $ 831,493 $ - 831,493 $		7,589,613 $ 1,420,875) ( 6,168,738 $ 6,168,738 $ 6,975 - 10,132 76,967) ( 138,841) ( 5,970,037 $ 7,427,254 $ 1,457,217) ( 5,970,037 $	653,005 $ 518,595) ( 134,410 $ 134,410 $ 510 - - 7,143) ( 8,055) ( 119,722 $ 613,498 $ 493,776) ( 119,722 $	11,587,972 $ 8,182,213) ( 3,405,759 $ 3,405,759 $ 15,625 117) ( - 260,132) ( 30,283) ( 3,130,852 $ 11,499,572 $ 8,368,720) ( 3,130,852 $	1,317,804 $ 807,079) ( 510,725 $ 510,725 $ 103,023 29) ( 5,938 136,263) ( 8,418) ( 474,976 $ 1,398,339 $ 923,363) ( 474,976 $	28,726,237 $ 9,328,119) ( 19,398,118 $ 19,398,118 $ 2,822,688 14,187) ( 116,295 1,341,124) ( 279,089) ( 20,702,701 $ 31,178,076 $ 10,475,375) ( 20,702,701 $	122,361,439 $ 45,014,883) ( 77,346,556 $ 77,346,556 $ 381,183 770,969) ( 5,989,593 2,462,479) ( 836,153) ( 79,647,731 $ 120,140,039 $ 40,492,308) ( 79,647,731 $	581,306 $ 454,356) ( 126,950 $ 126,950 $ 25,739 231) ( 14,639 23,076) ( 4,489) ( 139,532 $ 601,703 $ 462,171) ( 139,532 $	852,610 $ 583,950) ( 268,660 $ 268,660 $ 635,228 - 510,292 74,377) ( 13,999) ( 1,325,804 $ 1,981,414 $ 655,610) ( 1,325,804 $	221,576 $ 11,358) ( 210,218 $ 210,218 $ 21,755 - 21,085) ( 2,221) ( 5,099) ( 203,568 $ 217,148 $ 13,580) ( 203,568 $	174,714,939 $ 66,321,428) ( 108,393,511 $ 108,393,511 $ 4,012,726 785,533) ( 6,644,013 4,383,782) ( 1,334,519) ( 112,546,416 $ 175,888,536 $ 63,342,120) ( 112,546,416 $

~47~

At January 1 Cost Accumulated depreciation Opening net book amount as at January 1 Additions Disposals Reclassifications Depreciation Net exchange differences Closing net book amount as at June 30 At June 30 Cost Accumulated depreciation						2019	2019					Total
	Land	Buildings	Machinery equipment	Loading and unloading equipment	Computer and communication equipment	Transportation equipment	Ships	Office equipment	Lease assets	Leasehold improvements	Others
	822,076 $ - 822,076 $ 822,076 $ - - - - 7,880 829,956 $ 829,956 $ - 829,956 $	7,436,436 $ 1,258,082) ( 6,178,354 $ 6,178,354 $ 68,571 - 88,162 77,465) ( 71,012 6,328,634 $ 7,660,223 $ 1,331,589) ( 6,328,634 $	640,766 $ 511,626) ( 129,140 $ 129,140 $ 319 197) ( - 6,772) ( 1,841 124,331 $ 648,060 $ 523,729) ( 124,331 $	10,823,844 $ 7,327,291) ( 3,496,553 $ 3,496,553 $ 4,174 946) ( 99,426 259,414) ( 16,715 3,356,508 $ 10,968,504 $ 7,611,996) ( 3,356,508 $	1,245,653 $ 617,547) ( 628,106 $ 628,106 $ 10,205 467) ( 16,173 114,620) ( 5,744 545,141 $ 1,269,170 $ 724,029) ( 545,141 $	22,567,926 $ 7,371,302) ( 15,196,624 $ 15,196,624 $ 4,611,610 7,114) ( - 1,005,690) ( 114,160 18,909,590 $ 27,326,997 $ 8,417,407) ( 18,909,590 $	126,866,151 $ 50,041,877) ( 76,824,274 $ 76,824,274 $ 144,653 530,394) ( 2,835,137 2,508,681) ( 465,926 77,230,915 $ 123,217,723 $ 45,986,808) ( 77,230,915 $	543,931 $ 423,622) ( 120,309 $ 120,309 $ 14,419 236) ( 12,879 21,594) ( 2,001 127,778 $ 569,788 $ 442,010) ( 127,778 $	20,242,368 $ 6,703,192) ( 13,539,176 $ 13,539,176 $ - - 13,539,176) ( - - - $ - $ - - $	605,782 $ 480,658) ( 125,124 $ 125,124 $ 6,940 - 223,791 45,906) ( 402 310,351 $ 841,546 $ 531,195) ( 310,351 $	166,460 $ 7,011) ( 159,449 $ 159,449 $ 65,057 - 30,707) ( 2,138) ( 416 192,077 $ 201,227 $ 9,150) ( 192,077 $	191,961,393 $ 74,742,208) ( 117,219,185 $ 117,219,185 $ 4,925,948 539,354) ( 10,294,315) ( 4,042,280) ( 686,097 107,955,281 $ 173,533,194 $ 65,577,913) ( 107,955,281 $

A. The Group has issued a negative pledge to granting banks for drawing borrowings within the credit line to purchase the above transportation equipment. B. Information about the property, plant and equipment that were pledged to others as collaterals is provided in Note 8.

~48~

`－` (9) Leasing arrangements lessee/ Financial liabilities for hedging

A. The Group leases various assets including land, buildings, loading and unloading equipment, transportation equipment, ships, and business vehicles. Rental contracts are typically made for periods of 1 to 90 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. Short-term leases with a lease term of 12 months or less comprise buildings and ships. Low-value assets comprise office equipment and other equipment.
C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land
Buildings
Loading and unloading equipment
Transportation equipment
Ships
Office equipment
Other equipment
Land
Buildings
Loading and unloading equipment
Transportation equipment
Ships
Office equipment
Other equipment
Land
Buildings
Loading and unloading equipment
Transportation equipment
Ships
Office equipment
Other equipment

June 30,2020
December31,2019
June 30,2019
Carrying amount
Carrying amount
Carrying amount
11,091,284
$ 12,228,498
$ 13,562,696
$ 734,233
865,940

916,096
49,811
101,493

431,126
1,707,473
2,230,717
3,282,506
65,541,600
67,134,641
60,174,602
32,392
39,930
38,418
11,318
22,967
35,598
79,168,111
$ 82,624,186
$ 78,441,042
$ Three-month period ended Three-month period ended
June 30,2020
June 30,2019
Depreciationcharge
Depreciationcharge
475,776
$ 488,668
$ 71,021
65,846
25,268
38,796
168,079
265,652
2,221,805
2,072,173
4,303
4,506
5,695
5,933
2,971,947
$ 2,941,574
$ Six-month period ended
Six-month period ended
June 30,2020
June 30,2019
Depreciationcharge
Depreciationcharge
953,895
$ 969,805
$ 143,285
131,271
50,726
77,200
350,817
532,795
4,516,357
4,105,164
8,756
8,557
11,433
11,806
6,035,269
$ 5,836,598
$

~49~

D. For the six-month periods ended June 30, 2020 and 2019, the additions to right-of-use assets were $3,387,497 and $9,969,137, respectively.
E. For the six-month periods ended June 30, 2020 and 2019, the disposals to right-of-use assets were $20,757 and $61,434, respectively.
F. The information on income and expense accounts relating to lease contracts is as follows:

	Three-month period ended	Three-month period ended	Three-month period ended	Three-month period ended
		June 30,2020		June 30,2019
Items affecting profit or loss
Interest expense on lease liabilities	$	676,447	$	676,490
Expense on short-term lease contracts		975,459		1,726,058
Expense on leases of low-value assets		3,379		4,179
Expense on variable lease payments		1,063		1,462
Gains arising from lease modifications		464		2,306
	Six-month period ended		Six-month period ended
		June30,2020		June30,2019
Items affecting profit or loss
Interest expense on lease liabilities	$	1,445,085	$	1,351,641
Expense on short-term lease contracts		2,313,749		3,461,291
Expense on leases of low-value assets		7,513		8,176
Expense on variable lease payments		2,180		2,872
Gains arising from lease modifications		465		2,306

G. For six-month period ended June 30, 2020 and 2019, the Group’s total cash outflow for leases amounted to $9,462,009 and $10,274,041, respectively.
H. As of June 30, 2020, the Group had entered into lease agreements that contained non-lease service component. Based on the fair value of the lease and non-lease component, the future commitment payment allocated to service component amounted to $10,643,805.
I. The Group has applied the practical expedient to “Covid-19-related rent concessions”, and recognised the gain from changes in lease payments arising from the rent concessions amounting to $1,908 by decreasing rent expense in $1,540 and increasing other income in $368 for the sixmonth period ended June 30, 2020.
J. To hedge the impact of expected variable exchange rate risk arising from US dollar denominated lease liabilities payable, the Company designated US dollar denominated lease contracts as the hedging instruments for hedging the foreign exchange variation of future US dollar denominated marine freight income and adopted cash flow hedge accounting. Moreover, the effective portion with respect to the changes in cash flows of the hedging instruments is deferred to recognise in gains (loss) on hedging instruments, which is under other equity interest, and will be directly included in the marine freight income when the hedged items are highly probable realised. Details of relevant transactions are as follows:

~50~

June 30, 2020

June30,2020	June30,2020
(a) Lease liabilities designated as hedges (recorded as financial liabilities for hedging) Designated as Hedged items hedginginstruments Contractperiod Bookvalue Expected US dollar denominated marine freight income transaction US dollar denominated lease liabilities 2019.1.1~2034.8.15 18,850,478 $ Designated as Hedgeditems hedginginstruments Contract period Bookvalue Expected US dollar denominated marine freight income transaction US dollar denominated lease liabilities 2019.1.1~2034.8.15 20,188,942 $ Designated as Hedgeditems hedginginstruments Contract period Bookvalue Expected US dollar denominated marine freight income transaction US dollar denominated lease liabilities 2019.1.1~2027.6.12 16,012,394 $ December31,2019 June30,2019 June 30,2020 December31,2019 June 30,2019 Cash flow hedges`：` Exchange rate risk Lease liability contracts designated as hedges Current liabilities 1,904,770 $ 1,861,026 $ 1,635,308 $ Non-current liabilities 16,945,708 18,327,916 14,377,086 18,850,478 $ 20,188,942 $ 16,012,394 $		Bookvalue
		18,850,478 $

	Contract period 2019.1.1~2034.8.15 June30,2019	Bookvalue
		20,188,942 $

		Bookvalue
		16,012,394 $
			1,635,308 $ 14,377,086
			16,012,394 $

~51~

(b) Other equity - cash flow hedge reserve

Other equity - cash flow hedge reserve
			2020			2019
At April 1		$	333,011	($		64,904)
Less : Profit (loss) on hedge effectiveness-amount
recognised in other comprehensive income			470,291	(		99,031)
Add : Reclassified to freight revenue as the hedged
item has affected profit or loss	(		10,899)			5,094
At June 30		$	792,403	($		158,841)
			2020			2019
At January 1		$	460,138		$	-
Less : Profit (loss) on hedge effectiveness-amount
recognised in other comprehensive income			351,704	(		167,963)
Add : Reclassified to freight revenue as the hedged
item has affected profit or loss	(		19,439)			9,122
At June 30		$	792,403	($		158,841)

(c) For the three-month and six-month periods ended June 30, 2020 and 2019, there are no cash flow hedges transactions of ineffective portion should be recognized in profit or loss.
(d) Information relating to the fair values of abovementioned hedging financial liabilities is provided in Note 12(3).
K. The amounts of lease liabilities (net of the lease liabilities designated as hedges) of the Group on June 30, 2019, December 31, 2019 and June 30, 2020 are as follows:

Current lease liabilities Current lease liabilities - related parties Non-current lease liabilities Non-current lease liabilities - related parties	June 30, 2020 December31,2019 8,288,247 $ 8,479,576 $ 552,689 596,000 49,818,344 51,284,350 403,221 682,967 59,062,501 $ 61,042,893 $	June 30,2019
		9,232,238 $ 594,515 50,104,936 1,000,509
		60,932,198 $

~52~

(10) Investment property, net

Investment property, net
						2020
			Land			Buildings			Total
At January 1
Cost		$	1,415,029		$	4,788,141		$	6,203,170
Accumulated depreciation			-	(		748,100)	(		748,100)
		$	1,415,029		$	4,040,041		$	5,455,070
Opening net book amount as at January 1		$	1,415,029		$	4,040,041		$	5,455,070
Reclassifications	(		18,209)			24,312			6,103
Depreciation			-	(		78,159)	(		78,159)
Net exchange differences	(		19)	(		91,529)	(		91,548)
Closing net book amount as at June 30		$	1,396,801		$	3,894,665		$	5,291,466
At June 30
Cost		$	1,396,801		$	4,703,614		$	6,100,415
Accumulated depreciation			-	(		808,949)	(		808,949)
		$	1,396,801		$	3,894,665		$	5,291,466
						2019
			Land			Buildings			Total
At January 1
Cost		$	1,415,054		$	5,048,676		$	6,463,730
Accumulated depreciation			-	(		628,656)	(		628,656)
		$	1,415,054		$	4,420,020		$	5,835,074
Opening net book amount as at January 1		$	1,415,054		$	4,420,020		$	5,835,074
Reclassifications			-			168			168
Depreciation			-	(		83,643)	(		83,643)
Net exchange differences			10			74,104			74,114
Closing net book amount as at
June 30		$	1,415,064		$	4,410,649		$	5,825,713
At June 30
Cost		$	1,415,064		$	5,143,029		$	6,558,093
Accumulated depreciation			-	(		732,380)	(		732,380)
		$	1,415,064		$	4,410,649		$	5,825,713

~53~

A. Rental income from the investment property and direct operating expenses arising from the investment property are shown below:

investment property are shown below:
Rental revenue from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the period Rental revenue from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the period	Three-month period endedJune30,2020 50,300 $ 38,743 $ 433 $ Six-month period endedJune30,2020 105,945 $ 78,168 $ 750 $	Three-month period endedJune30,2019
		50,166 $
		42,262 $
		175 $
		Six-month period endedJune30,2019
		100,330 $
		84,431 $
		396 $

B. The fair value of the investment property held by the Group as at June 30, 2020, December 31, 2019 and June 30, 2019 was $6,919,205, $7,195,945 and $7,921,672, respectively. The fair value measurements were based on the market prices of recently sold properties in the immediate vicinity of a certain property, and were classified as Level 2.
C. Information about the investment property that were pledged to others as collaterals is provided in Note 8.

(11) Other non-current assets

in Note 8. Other non-current assets
Prepayments for equipment Refundable deposits Others	June 30,2020 December31,2019 13,077,677 $ 9,308,236 $ 231,793 229,095 72,709 101,051 13,382,179 $ 9,638,382 $	June 30,2019
		7,335,600 $ 229,710 98,731
		7,664,041 $

~54~

Movement analysis of prepayments for equipment are as follows:

			2020			2019
At January 1		$	9,308,236		$	4,619,738
Additions			10,609,573			5,914,049
Reclassification to property,
plant and equipment	(		6,507,359)	(		3,244,964)
Reclassification to intangible assets	(		1,867)			-
Net exchange differences	(		330,906)			46,777
At June 30		$	13,077,677		$	7,335,600

Amount of borrowing costs capitalised as part of prepayment for equipment and the range of the interest rates for such capitalisation are as follows:

				Three-month	Three-month	period	Three-month period	Three-month period	Three-month period
				ended June 30,2020			ended		June 30, 2019
Amount capitalised			$			62,567	$		44,965
Interest rate				0.86%~4.10%			0.86%~4.70%
				Six-month period			Six-month period
				ended June 30, 2020			ended		June 30, 2019
Amount capitalised			$			132,097	$		104,431
Interest rate				0.86%~4.10%			0.86%~4.70%
Other current liabilities
			June 30,2020		December31,2019				June 30,2019
Receipt in advance		$		21,584	$		56,522	$	36,869
Long-term liabilities - current portion			25,244,379			22,841,596			21,771,914
Corporate bonds - current portion				4,000,000			-		-
Shipowner's accounts				2,260,331		2,366,770			1,682,782
Agency accounts				1,812,228		2,453,406			2,603,691
Others				49,668			46,015		75,294
		$	33,388,190		$	27,764,309		$	26,170,550
Corporate bonds payable
			June 30,2020		December31,2019				June 30, 2019
Domestic secured corporate bonds		$	10,000,000		$	10,000,000		$	10,000,000
Less: Current portion or exercise
of put options	(			4,000,000)			-		-
		$		6,000,000	$	10,000,000		$	10,000,000

(12) Other current liabilities

(13) Corporate bonds payable

~55~

A. On April 25, 2017, the Company issued its thirteenth domestic secured corporate bonds (referred herein as the “Thirteenth Bonds”), totaling $8,000,000. The Thirteenth Bonds are categorized into Bond A, B, C, D, E, F and G, depending on the guarantee institution. Bond A totals $2,000,000, and the rest total $6,000,000, with each par value of $1,000,000. The major terms of the issuance are set forth below:
(a) Period: 5 years (April 25, 2017 to April 25, 2022)
(b) Coupon rate: 1.05% fixed per annum
(c) Principal repayment and interest payment
- Repayments for the Thirteenth Bonds are paid annually on coupon rate, starting a year from the issuing date. For each category of the bonds mentioned above, half the principal must be paid at the end of the fourth year, and another half at the maturity date.
(d) Collaterals
- The Thirteenth Bonds are secured. Bond A is guaranteed by Hua Nan Bank, Bond B is guaranteed by First Bank, Bond C is guaranteed by Mega International Commercial Bank, Bond D is guaranteed by Land Bank of Taiwan, Bond E is guaranteed by Chang Hwa Bank, Bond F is guaranteed by Taiwan Cooperative Bank, and Bond G is guaranteed by Bank Sinopac.
B. On June 27, 2018, the Company issued its fourteenth domestic secured corporate bonds (referred herein as the “Fourteenth Bonds”), totaling $2,000,000 at face value. The major terms of the issuance are set forth below:
(a) Period: 5 years (June 27, 2018 to June 27, 2023)
(b) Coupon rate: 0.86% fixed per annum
(c) Principal repayment and interest payment

Repayments for the Fourteenth Bonds are paid annually at coupon rate, starting a year from the issuing date. The principal of the Fourteenth Bonds shall be repaid in lump sum at maturity.

(d) Collaterals

The Fourteenth Bonds are secured and are guaranteed by First Commercial Bank.

~56~

(14) Long-term loans

Long-term loans
			June 30,2020	December31,2019					June 30,2019
Secured bank loans		$	57,411,696		$	55,633,704		$	59,063,409
Unsecured bank loans			53,560,621			51,053,234			47,204,027
Add : Unrealised foreign exchange
(losses) gains	(		26,139)			49,713			267,193
Less: Hosting fee credit	(		38,042)	(		35,083)	(		35,895)
			110,908,136			106,701,568			106,498,734
Less: Current portion (recorded as
other current liabilities)	(		25,244,379)	(		22,841,596)	(		21,771,914)
		$	85,663,757		$	83,859,972		$	84,726,820
Borrowing period		2020.08~2030.06			2020.01~2029.11			2019.08~2028.12
Interest rate			0.93%~5.15%			1.12%~5.15%			0.95%~5.15%

Please refer to Note 8 for details of the collaterals pledged for the above long-term loans.

(15) Other non-current liabilities

Other non-current liabilities
Accrued pension liabilities Guarantee deposits received Unrealised gain on sale and leaseback	June 30, 2020 December31,2019 2,971,137 $ 3,028,061 $ 280,254 325,987 3,645 14,517 3,255,036 $ 3,368,565 $	June 30,2019
		2,921,712 $ 340,629 13,317
		3,275,658 $

(16) Pension

A. (a) The Company and its domestic subsidiary-TTSC have a defined benefit pension plan in accordance with the Labor Standards Act (“the Act”), covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiary-TTSC contribute monthly an amount equal to 15% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiary-TTSC would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiary-TTSC will make contributions for the deficit by next March.

~57~

  - (b) The employees with R.O.C. nationality of the Group’s subsidiaries, EGH, GMS and EMU, adopted the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement.

  - (c) For the aforementioned pension plan, the Group recognised pension costs and expenses of, $52,629, $84,824, $97,854 and $145,442 for the three-month and six-month periods ended June 30, 2019 and 2020, respectively.

  - (d) Expected contributions to the defined benefit pension plans of the Company and its subsidiary-TTSC for the six-month period ended June 30, 2020 amounts to $98,628.

B. (a) Effective July 1, 2005, the Company and its domestic subsidiary-TTSC have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the“Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiary-TTSC contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
- (b) The pension costs and expenses under defined contribution pension plans of the Group for the three-month and six-month periods ended June 30, 2020 and 2019 were $72,651, $67,740, $150,297 and $130,115, respectively.
(17) Capital stock
A. As of June 30, 2020, the Company’s authorized capital was $50,000,000, and the paid-in capital was $48,129,738, consisting of 4,812,974 thousand shares of common stocks with a par value of NT$10 (in dollars) per share. All proceeds from shares issued have been collected.
B. On June 24, 2020, the shareholders meeting of the Company resolved to increase authorized capital from $50,000,000 to $70,000,000. All proceeds from share issuance was completed on July 22, 2020.
C. On August 13, 2019, the Board of Directors of the Company resolved to increase capital by $3,000,000 by issuing 300,000 thousand shares at a par value of NT$10 (in dollars) per share, of which 30,000 thousand shares are reserved for employee preemption. The proposal of capital increase has been reported and became effective on December 3, 2019. The total amount of shares was $3,333,934. All proceeds from share issuance was completed on December 31, 2019.

~58~

(18) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

legal reserve is insufficient.
At January 1 Expired unclaimed dividends Recognition of change in equity of associates in proportion to the Company's ownership At June 30	Share premium 9,167,217 $ - - 9,167,217 $	Employe stock options exercised 110,956 $ - - 110,956 $	Adjustments to share of changes in equity of associates and joint ventures 2,122,105 $ - 1,019 2,123,124 $ 2020	Donated assets 446 $ - - 446 $	Others
					6,713 $ 38 -
					6,751 $


Share premium 8,833,283 $ - 8,833,283 $	Adjustments to Employe share of changes stock in equity of options associates and exercised joint ventures 93,890 $ 2,124,813 $ - 8,924) ( 93,890 $ 2,115,889 $	Donated assets 446 $ - 446 $	Others
			6,713 $ -
			6,713 $

~59~

(19) Retained earnings

A. According to the Company’s Articles of Incorporation, if there is any profit for a fiscal year, the Company shall first make provision for all taxes and cover prior years’ losses and then appropriate 10% of the residual amount as legal reserve. Dividends shall be proposed by the Board of Directors and resolved by the stockholders.
B. Dividend policy

In order to facilitate future expansion plans, dividends to stockholders are distributed mutually in the form of both cash and stocks with the basic principle that the ratio of cash dividends to total stock dividends shall not be lower than 10%.

C. Legal reserve
Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.
E. The appropriation of earnings of year 2018 as resolved by the shareholders meeting of the Company on June 21, 2019 is as follows:

Year ended December 31, 2018 Accrual of legal reserve $ 29,392

F. For the year ended December 31, 2019, the Company’s net income after tax plus other items including current unappropriated retained earnings are negative, thus the Company will not provision legal reserve. Additionally, the shareholders meeting of the Company during its meeting on June 24, 2020 adopted a resolution to participate will retain attributable earnings for future operating plan, thus the Company will not appropriate shareholders’ bonus.

~60~

2020

(20) Other equity items

Unrealised gains (losses) onvaluation Hedging reserve Currency translation Total At January 1 1,411,638 $ 579,757 $ 856,773) ($ 1,134,622 $ Revaluation – gross 254,166) ( - - 254,166) ( Revaluation – tax 10,198 - - 10,198 Revaluation – associates 79,546) ( - - 79,546) ( Cash flow hedges: – Fair value loss in the period – Group - 332,265 - 332,265 – Group – tax - 68,476) ( - 68,476) ( – Associates - 86,312 - 86,312 Currency translation differences: – Group - - 897,208) ( 897,208) ( – Group – tax - - 13 13 – Associates - - 94,805) ( 94,805) ( At June 30 1,088,124 $ 929,858 $ 1,848,773) ($ 169,209 $ Unrealised gains (losses) onvaluation Hedging reserve Currency translation Total At January 1 1,234,225 $ 58,649) ($ 17,580 $ 1,193,156 $ Revaluation – gross 240,821 - - 240,821 Revaluation – tax 7,125) ( - - 7,125) ( Revaluation – associates 41,341 - - 41,341 Revaluation transferred to retained earnings – associates 2 - - 2 Cash flow hedges: – Fair value loss in the period – Group - 158,841) ( - 158,841) ( – Group – tax - 32,907 - 32,907 – Associates - 141,914) ( - 141,914) ( Currency translation differences: – Group - - 417,845 417,845 – Group – tax - - 5) ( 5) ( – Associates - - 45,656 45,656 At June 30 1,509,264 $ 326,497) ($ 481,076 $ 1,663,843 $ 2019		Unrealised gains (losses) onvaluation	Unrealised gains (losses) onvaluation	Hedging reserve	Hedging reserve	Currency translation	Currency translation
		1,411,638 $ 254,166) ( 10,198 79,546) ( - - - - - - 1,088,124 $

	Unrealised gains (losses) onvaluation			Hedging reserve	Currency translation
1,234,225 $ 240,821 7,125) ( 41,341 2 - - - - - - 1,509,264 $			($ ( ( ($	58,649) - - - - 158,841) 32,907 141,914) - - - 326,497)	17,580 $ - - - - - - - 417,845 5) ( 45,656 481,076 $	$ ( ( ( ( $
							$

~61~

(21) Operating revenue

Operating revenue
Revenue from contracts with customers Other - ship rental and slottage income Revenue from contracts with customers Other - ship rental and slottage income	Three-month period ended June 30,2020 43,316,204 $ 554,542 43,870,746 $ Six-month period ended June 30, 2020 86,218,244 $ 1,127,757 87,346,001 $	Three-month period ended June 30,2019 46,396,725 $ 715,016 47,111,741 $
		Six-month period ended June 30,2019
		91,834,139 $ 974,654
		92,808,793 $

A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of services over time and at a point in time (terminal and other services) in the following major businesses (Ship-owners, agent and terminal are classified as transportation department) :

Three-month period
ended June 30,2020
Ship-owners
Agent
Terminal
Total segment revenue
44,038,669
$ 1,960,651
$ 3,336,415
$ Inter-segment revenue
3,468,237)
(
1,206,055)
(
1,632,806)
(
Revenue from external
customer contracts
40,570,432
$ 754,596
$ 1,703,609
$ Three-month period
ended June 30,2019
Ship-owners
Agent
Terminal
Total segment revenue
47,345,936
$ 2,284,318
$ 3,761,186
$ Inter-segment revenue
4,032,804)
(
1,446,135)
(
2,001,002)
(
Revenue from external
customer contracts
43,313,132
$ 838,183
$ 1,760,184
$ Six-month period
ended June 30,2020
Ship-owners
Agent
Terminal
Total segment revenue
87,817,570
$ 4,047,265
$ 6,308,322
$ Inter-segment revenue
6,897,359)
(
2,434,772)
(
3,121,582)
(
Revenue from external
customer contracts
80,920,211
$ 1,612,493
$ 3,186,740
$ Six-month period
ended June 30,2019
Ship-owners
Agent
Terminal
Total segment revenue
93,315,079
$ 4,524,967
$ 7,330,236
$ Inter-segment revenue
7,568,772)
(
2,819,738)
(
3,921,493)
(
Revenue from external
customer contracts
85,746,307
$ 1,705,229
$ 3,408,743
$

Other
Total
287,567
$ 49,623,302
$ -
6,307,098)
(
287,567
$ 43,316,204
$ Other
Total
485,226
$ 53,876,666
$ -
7,479,941)
(
485,226
$ 46,396,725
$ Other
Total
498,800
$ 98,671,957
$ -
12,453,713)
(
498,800
$ 86,218,244
$ Other
Total
973,860
$ 106,144,142
$ -
14,310,003)
(
973,860
$ 91,834,139
$

~62~

B. Contract assets and liabilities

The Group has recognised the following revenue-related contract assets and liabilities:

June 30, 2020 December 31, 2019 June 30, 2019 January 1, 2019 Contract assets: Contract assets relating to marine freight income $ 1,186,338 $ 1,693,497 $ 1,654,853 $ 2,244,065 Contract liabilities: Contract liabilities – unearned marine freight income ($ 2,492,427) ($ 2,213,538) ($ 2,166,031) ($ 1,774,392)

Revenue recognised that was included in the contract liability balance at the beginning of the period:

period:
Marine freight income Marine freight income	Three-month period ended June 30,2020 - $ Six-month period ended June 30,2020 2,213,538 $	Three-month period ended June 30,2019
		- $
		Six-month period ended June 30,2019 1,774,392 $

(22) Other income and expenses, net

Other income and expenses, net
Three-month period ended June 30,2020 Net gains on disposal of property, plant and equipment 4,445 $ Six-month period endedJune30,2020 Net gains on disposal of property, plant and equipment 1,932) ($	Three-month period ended June 30,2019
	10,129 $
	Six-month period endedJune30,2019
	357,520 $

Net gains on disposal of property, plant and equipment

(23) Interest income

nterest income
Interest income from bank deposits Interest income from financial assets measured at amortised cost	Three-month period ended June 30,2020 82,831 $ 4,561 87,392 $	Three-month period ended June 30,2019
		183,139 $ 9,062
		192,201 $

~63~

Interest income from bank deposits Interest income from financial assets measured at amortised cost	Six-month period ended June 30,2020 202,424 $ 23,047 225,471 $	Six-month period ended June 30,2019 353,487 $ 32,087 385,574 $

(24) Other income

		Three-month period	Three-month period		Three-month period	Three-month period
		endedJune30,2020			endedJune30,2019
Rent income		$	52,278		$	50,215
Dividend income			73,247			57,526
Other income, others			18,294			52,561
		$	143,819		$	160,302
			Six-month period			Six-month period
		ended June 30, 2020			ended June 30,2019
Rent income		$	109,908		$	100,449
Dividend income			73,247			89,638
Other income, others			86,500			75,121
		$	269,655		$	265,208
Other gains and losses
		Three-month period			Three-month period
		ended June 30,2020			ended June 30,2019
Net losses on disposal of investments		$	-	($		206)
Gains arising from lease modifications			464			2,306
Net currency exchange gains			63,901			8,405
Net gains on disposal of right-of-use assets			18,676			10,600
Depreciation on investment property	(		38,875)	(		41,924)
Other non-operating expenses	(		26,376)	(		35,307)
		$	17,790	($		56,126)
			Six-month period			Six-month period
		ended June 30,2020			ended June 30,2019
Net gains on disposal of investments		$	161		$	22
Gains arising from lease modifications			465			2,306
Net currency exchange gains			209,769			113,840
Net gains on disposal of right-of-use assets			33,677			14,158
Depreciation on investment property	(		78,159)	(		83,643)
Other non-operating expenses	(		61,024)	(		65,780)
		$	104,889	($		19,097)

(25) Other gains and losses

~64~

(26) Finance costs

Finance costs
		Three-month period			Three-month period
		ended June 30,2020			ended June 30,2019
Interest expense:
Bank loans		$	587,445		$	783,442
Corporate bonds			24,953			25,231
Lease liabilities			676,447			676,490
			1,288,845			1,485,163
Less: Capitalized borrowing costs	(		62,567)	(		44,965)
		$	1,226,278		$	1,440,198
			Six-month period			Six-month period
		ended June 30,2020			ended June 30, 2019
Interest expense:
Bank loans		$	1,187,667		$	1,477,488
Corporate bonds			50,184			50,184
Lease liabilities			1,445,085			1,351,641
			2,682,936			2,879,313
Less: Capitalized borrowing costs	(		132,097)	(		104,431)
		$	2,550,839		$	2,774,882
Expenses by nature
		Three-month period			Three-month period
		ended June 30,2020			ended June 30,2019
Employee benefit expense		$	2,328,108		$	2,425,005
Depreciation charges on property,
plant and equipment			2,222,081			2,037,091
Depreciation charges on right-of-use assets			2,971,947			2,941,574
Amortisation charges on intangible assets			76,648			79,098
Other operating costs and expenses			31,084,469			38,536,801
		$	38,683,253		$	46,019,569
			Six-month period			Six-month period
		ended June 30,2020			ended June 30,2019
Employee benefit expense		$	4,634,307		$	4,779,551
Depreciation charges on property,
plant and equipment			4,383,782			4,042,280
Depreciation charges on right-of-use assets			6,035,269			5,836,598
Amortisation charges on intangible assets			153,654			156,742
Other operating costs and expenses			66,454,244			75,957,600
		$	81,661,256		$	90,772,771

(27) Expenses by nature

~65~

(28) Employee benefit expense

Employee benefit expense
Three-month period ended June 30, 2020 Wages and salaries 1,941,786 $ Labor and health insurance fees 163,617 Pension costs 125,280 Other personnel expenses 97,425 2,328,108 $ Six-month period ended June 30, 2020 Wages and salaries 3,852,692 $ Labor and health insurance fees 332,839 Pension costs 248,151 Other personnel expenses 200,625 4,634,307 $	Three-month period ended June 30, 2019
	1,952,921 $ 133,622 152,564 185,898
	2,425,005 $
	Six-month period endedJune30,2019
	3,848,131 $ 351,115 275,557 304,748
	4,779,551 $

A. According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute bonus to the employees that account for no less than 0.5% and pay remuneration to the directors and supervisors that account for no more than 2% of the total distributed amount.
B. (a) In accordance with the Articles of Incorporation of the Company, based on the profit for the six-month period ended June 30, 2020, employees’ compensation and directors’ remunerations were accrued at $14,691 and $4,585, respectively. The aforementioned amount was recognised in salary expenses.
(b) For the six-month period ended June 30, 2019, employees’ compensation was accrued at $830, while directors’ remunerations was accrued at $233. The aforementioned amount was recognised in salary expenses.
- Information about the appropriation of employees’, directors’ and supervisors’ remuneration by the Company as proposed by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

~66~

(29) Income tax

A. Income tax expense

(a) Components of income tax expense:

Current tax:
Current tax on profits for the period
Prior year income tax underestimation
(overestimation)
Total current tax
Deferred tax:
Origination and reversal of
temporary differences
Total deferred tax
Income tax expense
Current tax:
Current tax on profits for the period
Prior year income tax underestimation
(overestimation)
Total current tax
Deferred tax:
Origination and reversal of
temporary differences
Total deferred tax
Income tax expense

Three-month period
Three-month period
ended June 30,2020
ended June 30,2019
261,357
$ 336,938
$ 48,658

1,979)
(
310,015

334,959
135,510
51,996)
(
135,510
51,996)
(
445,525
$ 282,963
$ Six-month period
Six-month period
ended June 30,2020
ended June 30,2019
428,206
$ 632,956
$ 51,199
11,089)
(
479,405
621,867
81,629
94,281)
(
81,629
94,281)
(
561,034
$ 527,586
$

~67~

(b) The income tax (charge)/credit relating to components of other comprehensive income is as follows:

follows:
		Three-month period			Three-month period
		ended June 30,2020			ended June 30,2019
Changes in fair value of financial	($		3,316)		$	8,967
assets at fair value through other
comprehensive (loss) income
Exchange differences on translating
the financial statements of foreign
operations			-			3
Remeasurement of defined benefit
obligations			-			-
Cash flow hedges			97,031	(		15,038)
		$	93,715	($		6,068)
			Six-month period		Six-month period
		ended June 30,2020			ended June 30,2019
Changes in fair value of financial	($		10,198)		$	7,125
assets at fair value through other
comprehensive (loss) income
Exchange differences on translating
the financial statements of foreign
operations	(		13)			5
Remeasurement of defined benefit
obligations			159			-
Cash flow hedges			68,476	(		32,907)
		$	58,424	($		25,777)
The income tax charged/(credited) to equity during the period is as follows:
		Three-month period			Three-month period
		ended June 30,2020			ended June 30,2019
Reduction in capital surplus caused
by recognition of foreign investees
based on the shareholding ratio	($		22)	($		26)
			Six-month period		Six-month period
		ended June 30,2020			ended June 30,2019
Reduction in capital surplus caused
by recognition of foreign investees
based on the shareholding ratio	($		46)	($		52)

B. The Company and its subsidiary-TTSC’s income tax returns through 2017 and 2018 have been assessed and approved by the Tax Authority, respectively.

~68~

(30) Earnings (loss) per share

Earnings (loss) per share
		Three-monthperiod ended June 30,2020
				Weighted average
				number of ordinary
				shares outstanding	Earnings per share
	Amount aftertax			(shareinthousands)	(indollars)
Basic earnings per share
Net profit attributable to
ordinary shareholders of the
parent	$	3,192,356		4,812,974	$	0.66
Diluted earnings per share
Net profit attributable to
ordinary shareholders of the
parent	$	3,192,356		4,812,974
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation			-	1,793
Net profit attributable to
ordinary shareholders of the
parent	$	3,192,356		4,814,767	$	0.66
		Three-month period ended June 30, 2019
				Weighted average
				number of ordinary
				shares outstanding	Loss per share
	Amount aftertax			(shareinthousands)	(indollars)
Basic loss per share
Net loss attributable to
ordinary shareholders of the
parent	($	354,766)		4,512,974	($	0.08)
Diluted loss per share
Net loss attributable to
ordinary shareholders of the
parent	($	354,766)		4,512,974	($	0.08)

~69~

Basic earnings per share
Net profit attributable to
ordinary shareholders of the
parent
Diluted earnings per share
Net profit attributable to
ordinary shareholders of the
parent
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation
Net profit attributable to
ordinary shareholders of the
parent
Basic earnings per share
Net profit attributable to
ordinary shareholders of the
parent
Diluted earnings per share
Net profit attributable to
ordinary shareholders of the
parent
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation
Net profit attributable to
ordinary shareholders of the
parent plus assumed
conversion of all dilutive
potential ordinary shares

Weighted average
number of ordinary
shares outstanding
Earnings per share
Amount aftertax
(shareinthousands)
(indollars)
2,750,779
$ 4,812,974
0.57
$ 2,750,779
$ 4,812,974
-
1,793
2,750,779
$ 4,814,767
0.57
$ Weighted average
number of ordinary
shares outstanding
Earnings per share
Amount aftertax
(shareinthousands)
(indollars)
204,806
$ 4,512,974
0.05
$ 204,806
4,512,974
-
85
204,806
$ 4,513,059
0.05
$ Six-monthperiod ended June 30,2019
Six-monthperiod ended June 30,2020

Amount aftertax
204,806
$ 204,806
-
204,806
$

~70~

(31) Transactions with non-controlling interest

A. Acquisition of additional equity interest in a subsidiary
Subsidiary, EGH, purchased 3% of outstanding shares of ECN for cash of $650 (approx. USD 21) on December 10, 2019. The carrying amount of non-controlling interest in ECN was $2,019 at the acquisition date. This transaction resulted in a decrease in the non-controlling interest by $2,019 and an increase in the equity attributable to owners of the parent by $1,369.
B. The Group did not participate in the capital increase raised by a subsidiary proportionally to its interest to the subsidiary
Indirect subsidiary, ECO, of the Group increased its capital by issuing new shares on May 31, 2019. The subsidiary, EGH, did not acquire shares proportionally to its interest. As a result, the Group decreased its share interest by 25%. The transaction increased non-controlling interest by $6,387 and decreased the equity attributable to owners of parent by $3,006.
C. For the six-month period ended June 30, 2020, the amount of cash dividends paid to noncontrolling interests was $197,085.

(32) Supplemental cash flow information

A. Investing activities with partial cash payments
(a) Property, plant and equipment

trolling interests was $197,085. mental cash flow information esting activities with partial cash payments Property, plant and equipment
		Six-month period			Six-month period
	ended June 30,2020			ended June 30,2019
Purchase of property, plant and equipment	$	4,012,726		$	4,925,948
Add: Opening balance of payable
on equipment		455,427			34,258
Less: Ending balance of payable
on equipment	(	809,492)	(		1,737,460)
Cash paid during the period	$	3,658,661		$	3,222,746
Prepayments for equipment (recorded as other non-current assets)
		Six-month period			Six-month period
	ended June 30,2020			ended June 30,2019
Purchase of prepayments for equipment	$	10,609,573		$	5,914,049
Add: Opening balance of payable on
prepayments for equipment		-			194
Less: Ending balance of payable on
prepayments for equipment	(	99,153)	(		55,146)
Capitalized borrowing costs	(	132,097)	(		104,431)
Cash paid during the period	$	10,378,323		$	5,754,666

(b) Prepayments for equipment (recorded as other non-current assets)

~71~

(33) Changes in liabilities from financing activities

Changes in liabilities from financing activities	Changes in liabilities from financing activities
Long-term borrowings (including current portion) At January 1, 2020 106,701,568 $ Changes in cash flow from financing activities 5,464,977 Changes in other non-cash items - Impact of changes in foreign exchange rate 1,258,409) ( At June 30, 2020 110,908,136 $ Long-term borrowings (including current portion) At January 1, 2019 99,360,501 $ Adjustments under new standards - Changes in cash flow from financing activities 6,565,785 Changes in other non-cash items - Impact of changes in foreign exchange rate 572,448 At June 30, 2019 106,498,734 $		Guarantee deposits received	Lease liabilities and Financial liabilities for hedging	Liabilities from financing activities-gross
		325,987 $ 39,553) ( - 6,180) ( 280,254 $ Guarantee deposits received	81,231,835 $ 5,693,482) ( 3,486,154 1,111,528) ( 77,912,979 $ Lease liabilities (lease payable) and Financial liabilities for hedging	188,259,390 $ 268,058) ( 3,486,154 2,376,117) ( 189,101,369 $ Liabilities from financing activities-gross
	99,360,501 $ - 6,565,785 - 572,448 106,498,734 $	347,115 $ - 9,719) ( - 3,233 340,629 $	11,639,698 $ 60,563,079 5,450,061) ( 9,498,280 693,596 76,944,592 $		111,347,314 $ 60,563,079 1,106,005 9,498,280 1,269,277 183,783,955 $

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and their relationship with the Group

LATED PARTY TRANSACTIONS
Names of related parties and their relationship with the Group

Names of related parties

Relationship withthe Group

Evergreen International Storage and Transport Corp. (EITC)
Eva Airways Corp. (EVA)
Evergreen Security Corp. (ESC)
Charng Yang Development Co., Ltd. (CYD)
Taipei Port Container Terminal Corp. (TPCT)
Ningbo Victory Container Co. Ltd. (NVC)
Qingdao Evergreen C&T Co., Ltd. (QECT)
Green Peninsula Agencies Sdn. Bhd. (GPP)
Luanta Investment (Netherlands) N.V. (Luanta)
Balsam Investment (Netherlands) N.V. (Balsam)
Italia Marittima S.p.A. (ITS)
Colon Container Terminal S.A. (CCT)
PT. Evergreen Shipping Agency Indonesia (EMI)
Evergreen Shipping Agency Co. (U.A.E) LLC (UAE)

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate

~72~

Relationship with the Group

Names of related parties

Evergreen Shipping Agency Lanka (Private) Limited (ELK)

VIP Greenport Joint Stock Company (VGP) Ics Depot Services Sdn. Bhd. (IDS)

Evergreen Marine (Latin America) S.A. (ELA)

Evergreen International Corp. (EIC) Evergreen Airline Service Corp. (EGAS) Chang Yung-Fa Charity Foundation (CYFC) Chang Yung-Fa Foundation (CYFF) Evergreen Steel Corp. (EGST) Eever Accord Construction Corporation (EAC) Evergreen Aviation Technologies Corporation (EGAT) Evergreen Sky Catering Corporation (EGSC) Evergreen Air Cargo Services Corporation (EGAC)

Evergreen Aviation Precision Corporation (EGAP)

Central Reinsurance Corporation(CRC) Evergreen International S.A.(EIS) Evergreen Marine (Singapore) Pte. Ltd.(EMS) Gaining Enterprise S.A. (GESA) Evergreen Insurance Company Ltd. (EINS) Evergreen Shipping Agency (America) Corporation (EGA) Evergreen Shipping Agency (Japan) Corporation (EGJ) Evergreen Shipping Agency Philippines Corporation (EGP) Evergreen International Myanmar Co., Ltd. (EIM) Chestnut Estate B.V. (Chestnut) Advanced Business Process, Inc. (ABPI) Unigreen Marine S.A.(UMS) Directors, General manager and Vice General Manager

Associate (An associate since March 1, 2019) Associate Associate Associate (An subsidiary since March 1, 2020) Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party (Has been merged with EGAT on Febuary 28, 2019) Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Other related party Key management

~73~

(2) Significant related party transactions and balances

A. Operating revenue:

Sales of services: Associates Other related parties Sales of services: Associates Other related parties	Three-month period endedJune30,2020 419,233 $ 2,982,932 3,402,165 $ Six-month period ended June 30, 2020 928,459 $ 5,849,768 6,778,227 $	Three-month period endedJune30,2019 540,493 $ 3,418,571 3,959,064 $
		Six-month period ended June 30,2019
		1,165,258 $ 6,571,421
		7,736,679 $

The business terms on which the Group transacts with related parties are of no difference from those with non-related parties.

B. Purchases:

Purchases of services: Associates Other related parties Purchases of services: Associates Other related parties	Three-month period endedJune30,2020 862,705 $ 1,591,156 2,453,861 $ Six-month period ended June 30,2020 1,720,663 $ 3,242,808 4,963,471 $	Three-month period ended June 30, 2019
		888,002 $ 1,909,627
		2,797,629 $
		Six-month period ended June 30,2019
		1,511,826 $ 3,752,257
		5,264,083 $

Goods and services are purchased from associates and other related parties on normal commercial terms and conditions.

~74~

C. Receivables from related parties:

. June 30,2020 December31,2019 Accounts receivable: Associates 56,810 $ 121,156 $ Other related parties 526,681 659,406 Subtotal 583,491 $ 780,562 $ Other receivables: Associates -EVA 194,407 $ - $ -EITC 130,757 - -Other 98,486 1,818 Other related parties -Other 54,518 18,796 Subtotal 478,168 $ 20,614 $ Total 1,061,659 $ 801,176 $	June 30,2019 79,451 $ 744,522 823,973 $ 377,266 $ 63,784 150,797 25,907
	617,754 $
	1,441,727 $

The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest. The receivables include provisions against receivables from related parties.

D. Payables to related parties:

from related parties. Payables to related parties:
. Accounts payable: Associates Other related parties Subtotal Other payables: Associates Other related parties Subtotal Total	June 30,2020 December31,2019 115,875 $ 143,074 $ 370,609 268,028 486,484 $ 411,102 $ 19,683 $ 31,825 $ 157,396 149,671 177,079 $ 181,496 $ 663,563 $ 592,598 $	June 30,2019
		57,476 $ 188,403
		245,879 $
		35,122 $ 76,463
		111,585 $
		357,464 $

The payables to related parties arise mainly from purchase transactions. The payables bear no interest.

~75~

E. Property transactions:

(a) Acquisition of property, plant and equipment:

Associates Other related parties Associates Other related parties	Three-month period Three-month period ended June 30,2020 ended June 30,2019 8,570 $ 1,903 $ 763 - 9,333 $ 1,903 $ Six-month period Six-month period ended June 30,2020 ended June 30,2019 8,570 $ 2,018 $ 73,333 - 81,903 $ 2,018 $

(b) Disposal of property, plant and equipment:

Associates Associates	Disposal Gain on proceeds disposal - $ - $ Disposal Gain on proceeds disposal - $ - $ ended June 30,2020 Three-month period ended June 30, 2020 Six-month period	Disposal Gain on proceeds disposal - $ - $ ended June 30,2019 Three-month period ended June 30,2019 Six-month period	Disposal Gain on proceeds disposal - $ - $ ended June 30,2019 Three-month period ended June 30,2019 Six-month period
	Disposal proceeds - $	Disposal proceeds 149 $	Gain on disposal
			14 $

F. Leasing arrangements - lessee

(a) The Group leases buildings, ships as well as loading and unloading equipment from associates and other related parties. Rental contracts are typically made for periods of 2 to 10 years, rents are paid in accordance with the contract terms.

(b) Acquisition of right-of-use assets:

The Group leases buildings, ships as well as loading and unloading equipment from associates and other related parties under IFRS 16 ‘Leases’. Accordingly, on January 1, 2019, the Group increased ‘right-of-use asset’ by $3,196,381.

(c) Lease liabilities:
i. Outstanding balance:

ncreased ‘right-of-use asset’ by ease liabilities: Outstanding balance:	$3,196,381.
Associates Other related parties	June 30,2020 December31,2019 580,080 $ 791,302 $ 375,831 487,665 955,911 $ 1,278,967 $	June 30,2019
		1,021,103 $ 573,921
		1,595,024 $

~76~

ii. Interest expense:

Associates Other related parties Associates Other related parties	Three-month period Three-month period ended June 30,2020 ended June 30,2019 6,985 $ 13,163 $ 3,693 2,707) ( 10,678 $ 10,456 $ Six-month period Six-month period ended June 30,2020 ended June 30,2019 15,144 $ 22,314 $ 7,690 10,259 22,834 $ 32,573 $

(d) Lease liabilities designated as hedges:

			June 30, 2020	December	December	31,2019			June 30, 2019
Associates		$	69,992		$	94,049		$	120,669
Other related parties			423,947			610,456			972,619
		$	493,939		$	704,505		$	1,093,288
Agency accounts:
.			June 30,2020	December		31,2019			June 30, 2019
Debit balance of agency accounts:
Associates		$	61		$	513		$	-
Other related
parties
-EIC			686,585			337,038			-
-EGA			1,113,290			-			150,880
-Other			14,537			98,580			16,182
		$	1,814,473		$	436,131		$	167,062
.			June 30,2020	December		31,2019			June 30,2019
Credit balance of agency accounts:
Associates	($		55,954)	($		135,281)	($		112,359)
Other related
parties
-EGJ	(		386,923)	(		523,778)	(		442,940)
-Other			-	(		49,274)	(		5,238)
	($		442,877)	($		708,333)	($		560,537)

G. Agency accounts:

~77~

H. Shipowner’s accounts:

June 30, 2020 December 31, 2019 June 30, 2019

Debit balance of shipowner’s

accounts:

Associates -ITS $ 770,786 $ - $ 130,652 Other related parties -EIS - - 1,194,260 -GESA 19,093 28,957 32,757 $ 789,879 $ 28,957 $ 1,357,669 June 30, 2020 December 31, 2019 June 30, 2019

Credit balance of shipowner’s accounts:

Associates -ITS $ - ($ 277,877) $ - Other related parties -EIS ( 689,412) ( 1,027,141) - -EMS ( 1,570,919) ( 1,061,752) ( 1,682,782) ($ 2,260,331) ($ 2,366,770) ($ 1,682,782)

I. Loans to/from related parties:
(a) Loans to related parties:
- i. Outstanding balance:

s to/from related parties: Loans to related parties: i. Outstanding balance:
ii. Interest income: . Associates Associates Associates	June 30,2020 December31,2019 June 30,2019 796,533 $ 722,926 $ 662,685 $ Three-month period Three-month period ended June 30,2020 ended June 30,2019 2,894 $ 3,419 $ Six-month period Six-month period ended June 30, 2020 ended June 30,2019 7,708 $ 8,553 $	June 30,2019
	$	662,685 $

The loans to associates carry interest at floating rates for the three-month and six-month periods ended June 30, 2019 and 2020.

(b) Loans from related parties:
i. Outstanding balance:

Loans from related parties: i. Outstanding balance:
. Other related parties	June 30,2020 December31,2019 9,553 $ 524,743 $	June 30,2019
		607,072 $

~78~

ii. Interest expense:

Other related parties Other related parties	Three-month period Three-month period ended June 30,2020 ended June 30,2019 2,946 $ 7,283 $ Six-month period Six-month period ended June 30,2020 ended June 30,2019 7,470 $ 18,101 $

The loans from associates carry interest at floating rates for the three-month and six-month periods ended June 30, 2019 and 2020.

J. Endorsements and guarantees provided to related parties:

. Associates	June 30,2020 December31,2019 2,246,148 $ 3,674,191 $	June 30,2019
		3,173,361 $

K. The Board of Directors of the Company during its meeting on December 21, 2018 adopted a resolution to participate in the capital increase raised by EVA Airways Corporation amounting to 39,150 thousand shares, with a subscription price of NT$13 (in dollars) per share and total price of $508,944. The effective date was set on January 24, 2019. Moreover, the Company purchased 70 thousand shares as specific person and the purchase amounted to $700.
L. On November 10, 2019, the Board of Directors of the subsidiary, Peony, has resolved to participate in the capital increase of the investee, Balsam, accounted for using equity method, as the original shareholder. The amount of capital increase was USD 24,500. The effective date was set on November 14, 2019.
M. On November 13, 2019, the shareholders at the shareholders’ meeting of the subsidiary, Armand B.V., approved to sell 2.92% equity interests of the associate, Taipei Port Container Terminal Corporation, to other related party, EIS. The transaction date was set on February 1, 2020, and the transaction price amounted to $150,464 (approx. USD 4,997).
N. On December 20, 2019, the Board of Directors of the subsidiary, EGH, approved to acquire 16.50% equity interests of ELA from the associate, ITS, and each other related party, EIS and EMS. The transaction date was set on March 1, 2020, and the transaction price amounted to $9,712 (approx. USD 323).

~79~

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Salaries and other long-term employee benefits Salaries and other short-term employee benefits Post-employment benefits Salaries and other long-term employee benefits	Three-month period ended June 30,2020 44,132 $ 722 107 44,961 $ Six-month period ended June 30,2020 99,357 $ 1,275 214 100,846 $	Three-month period ended June 30,2019 33,472 $ 591 - 34,063 $ Six-month period ended June 30,2019
		82,666 $ 1,349 -
		84,015 $

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged assets
Financial assets at amortised cost
- Pledged time deposits
Refundable deposits
- Pledged time deposits
Property, plant and equipment
-Land
-Buildings
-Loading and unloading
equipment
-Ships
-Computer and
communication equipment
Investment property
-Land
-Buildings June30,2020
December31,2019
June30,2019
Purpose
Performance
239,295
$ 290,740
$ 293,748
$ guarantee
2,000
2,000
2,000
〞
514,312
514,312
514,312
Long-term loan
5,460,691
5,631,364
5,752,582
〞
1,693,910
1,900,801
1,984,915
〞
77,518,231
71,742,174
71,789,557
〞
221,981
314,161
416,078
〞
1,285,781
1,285,781
1,285,781
Long-term loan
3,837,805
3,972,653
4,346,133
〞
90,774,006
$ 85,653,986
$ 86,385,106
$ Book value

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

~80~

(2) Commitments

A. As of June 30, 2020, the Company had delegated DBS Bank to issue Standby Letter of Credit amounting to USD 5,000.
B. As of June 30, 2020, the long-term and medium-term loan facilities granted by the financial institutions with the resolution from the Board of Directors to finance the Group’s purchase of new ships and general working capital requirement amounted to $138,422,180 and the unutilized credit was $27,476,002.
C. As of June 30, 2020, the amount of guaranteed notes issued by the Company for loans borrowed was $88,896,197.
D. To meet its operational needs, the Company signed the shipbuilding contracts with Samsung Heavy Industries, Hyundai Mipo Dockyard Co., Ltd, Jiangnan Shipyard (Group) Co., Ltd. and China Shipbuilding Trading Company Ltd.. As of June 30, 2020, the total price of the contracts, wherein the vessels have not yet been delivered amounted to USD 2,298,832, USD 1,897,744 of which remain unpaid.
E. To meet its operational needs, the Company signed the transportation equipment purchase contracts. As of June 30, 2020, the total price of the contracts, wherein the equipment have not yet been delivered, amounted to USD 86,920, USD 22,632 of which remain unpaid.
F. In response to international regulations on sulfur content in shipping fuel, the Group entered into sulfur emission abatement equipment purchase contracts with Wartsila Finland Oy. The total contract prices are USD 32,716 and USD 18,920 remain unpaid. The Group signed installation contracts with Huarun Dadong Dockyard Co., Ltd., COSCO Shipping Heavy Industry (Zhoushan) Co., Ltd. and Global Oil And Gas Services. As of June 30, 2020, the total price of the contracts amounted to USD 58,874, USD 42,953 of which remain unpaid.
G. To meet its operational needs, the Company signed the loading and unloading equipment purchase contracts. As of June 30, 2020, the total price of the contracts amounted to $98,932, $89,039 of which remain unpaid.
H. For the Group’s lease contract which was entered into but not completed construction. As of June 30, 2020, the expected minimum lease payment in the future was $110,580,353.
I. As of June 30, 2020, the Group had entered into a service contract which was not belonging to lease component. The amount of future commitment payment is provided in Note 6(9).

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

A. On June 30, 2020, the Board of Directors of the subsidiary, EGH, resolved to make an equity transaction. EGH acquired 40% and 60% equity interests of EGP from the other related party, EIS, and a non-related party, respectively, and obtained the control over EGP. The transaction date was July 1, 2020 and the transaction amount was PHP 239,500 (approx. $141,760).

~81~

(a) The following table based on an unconfirmed acquisition of EGP report summarises the consideration paid and the fair values of the assets acquired and liabilities assumed at the acquisition date:

acquisition date:
			July 1, 2020
Purchase Concideration
Cash paid		$	141,760
Fair value of the identifiable assets
Cash and cash equivalents			413,198
Notes receivable			3,742
Accounts receivable			200,995
Prepayments			40,386
Other current assets			203,821
Property, plant and equipment, net			117,256
Right-of-use assets			2,419
Intangible assets			7,022
Other non-current assets			5,383
Accounts payable	(		119,922)
Current income tax liabilities	(		2,462)
Other current liabilities	(		297,601)
Deferred income tax liabilities	(		41,430)
Lease liabilities	(		1,012)
Other non-current liabilities	(		384,422)
Total identifiable net assets			147,373
Gain from bargain purchase	($		5,613)

(b) The fair value of the acquired identifiable intangible assets – customer relationship of $6,640 is provisional pending receipt of the final valuations for those assets.
(c) Had EGP been acquired from January 1, 2020, the consolidated statement of comprehensive income for the six-month period ended June 30, 2020 would show operating revenue and profit before income tax of $16,325 and $21,556, respectively.
B. On July 9, 2020, the Board of Directors of the Company resolved to issue the maximum amount of USD 300,000, 0% first unsecured overseas convertible bonds due in 5 years.
C. To fully maximize markets in Malaysia, on August 13, 2020, the Board of Directors of the secondtier subsidiary, EGM, resolved to make a property transaction. EGM would purchase properties located in Shah Alam City, Johor Bahru City and Port of Tanjung Pelepas (PTP), Malaysia from the associate, GPP, for the appraised amount of MYR 46,000.

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12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders and issue new shares to maintain an optimal capital.

(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivables Accounts receivable Other accounts receivable Guarantee deposits paid Financial liabilities Financial liabilities at amortised cost Accounts payable Other accounts payable Bonds payable Lease payable (including current portion) Long-term borrowings (including current portion) Guarantee deposits received Financial liabilities for hedging (including current portion)	June30,2020 1,458,417 $ 38,258,732 $ 762,480 95,124 14,645,781 1,422,304 231,793 55,416,214 $ June30,2020 15,523,040 $ 5,022,490 10,000,000 59,062,501 110,908,136 280,254 200,796,421 $ 18,850,478 $	December31,2019 1,719,423 $ 37,871,889 $ 2,188,536 129,545 14,759,813 1,027,279 229,095 56,206,157 $ December31,2019 16,580,812 $ 5,113,118 10,000,000 61,042,893 106,701,568 325,987 199,764,378 $ 20,188,942 $	June30,2019
			1,897,715 $
			37,163,150 $ 2,218,823 90,183 15,287,680 1,495,489 229,710
			56,485,035 $
			June30,2019
			17,293,161 $ 6,339,398 10,000,000 60,932,198 106,498,734 340,629
			201,404,120 $
			16,012,394 $

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B. Financial risk management policies
(a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial position and financial performance.
(b) Risk management is carried out by the Group’s Finance Department under policies approved by the Board of Directors. The Group’s Finance Department identifies, evaluates and hedges financial risks in close co-operation with the Group’s Operating Department. The Board of Directors provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD and CNY. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investment in foreign operations.
ii. The Group’s management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The group companies are required to hedge their entire foreign exchange risk exposure with the Group’s Finance Department. To manage their foreign exchange risk arising from future commercial transactions and recognised assets and liabilities, entities in the Group use forward foreign exchange contracts, transacted with Group’s Finance Department. Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a foreign currency that is not the entity’s functional currency.
iii. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: USD, GBP, EUR, CNY and others). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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Foreign currency amount Book value (In Thousands) Exchange rate (NTD) 691,095 $ 29.4600 20,359,659 $ 5,446 1.1198 179,660 3,261 1.2302 118,184 1,283,492 $ 29.4600 37,811,674 $ 59,500 4.1604 247,544 118,524 0.1290 450,431 7,059 1.2302 255,830 5,030 1.1198 165,936 241,481 0.1412 1,004,501 June30,2020 December31,2019	Foreign currency amount Book value (In Thousands) Exchange rate (NTD) 691,095 $ 29.4600 20,359,659 $ 5,446 1.1198 179,660 3,261 1.2302 118,184 1,283,492 $ 29.4600 37,811,674 $ 59,500 4.1604 247,544 118,524 0.1290 450,431 7,059 1.2302 255,830 5,030 1.1198 165,936 241,481 0.1412 1,004,501 June30,2020 December31,2019	Foreign currency amount Book value (In Thousands) Exchange rate (NTD) 691,095 $ 29.4600 20,359,659 $ 5,446 1.1198 179,660 3,261 1.2302 118,184 1,283,492 $ 29.4600 37,811,674 $ 59,500 4.1604 247,544 118,524 0.1290 450,431 7,059 1.2302 255,830 5,030 1.1198 165,936 241,481 0.1412 1,004,501 June30,2020 December31,2019
Foreign currency amount (In Thousands) 582,814 $ 2,889 1,080,163 $ 97,479 3,807 4,190 225,390	Exchange rate 30.0130 1.3118 30.0130 0.1284 1.3118 1.1233 0.1431	Book value (NTD)
		17,491,997 $ 113,743 32,418,932 $ 375,652 149,886 141,260 968,019

~85~

Financial assets Monetary items USD:NTD Financial liabilities Monetary items USD:NTD HKD:USD GBP:USD CNY:USD EUR:USD (Foreign currency: functional currency)	Foreign currency amount Book value (In Thousands) Exchangerate (NTD) 893,643 $ 31.0505 27,748,062 $ 1,414,098 $ 31.0505 43,908,450 $ 104,379 0.1280 414,851 5,421 1.2677 213,385 216,392 0.1454 976,954 3,691 1.1369 130,297 June 30,2019

iv. The total exchange (loss) gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and six-month periods ended June 30, 2020 and 2019 amounted to $63,901, $8,405, $209,769 and $113,840, respectively.
v. Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:
Financial assets Monetary items USD:NTD EUR:USD GBP:USD Financial liabilities Monetary items USD:NTD CNY:NTD HKD:USD GBP:USD EUR:USD RMB:USD (Foreign currency: functional currency)	Six-monthperiod endedJune30,2020
	Sensitivityanalysis
	Degree of variation 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on profit or loss 203,597 $ 1,797 1,182 189,611 $ 2,475 4,504 2,558 1,659 10,045	Effect on other comprehensive income
			- $ - - 188,505 $ - - - - -

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Six-month period ended June 30, 2019

	Six-monthperiod ended June 30,2019
Financial assets Monetary items USD:NTD Financial liabilities Monetary items USD:NTD HKD:USD GBP:USD CNY:USD EUR:USD (Foreign currency: functional currency)	Degree of Effect on Effect on other comprehensive variation profit or loss income 1% 277,481 $ - $ 1% 278,960 $ 160,125 $ 1% 4,149 - 1% 2,134 - 1% 9,770 - 1% 1,303 - Sensitivity analysis

Price risk

i. The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated balance sheet at fair value through other comprehensive income. The Group is not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group’s investments in equity securities comprise domestic listed and unlisted stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, equity would have increased/decreased by $14,340 and $18,470 for the six-month periods ended June 30, 2020 and 2019, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. During the six-month periods ended June 30, 2020 and 2019, the Group’s borrowings at variable rate were denominated in the NTD, USD and GBP.

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ii. At June 30, 2020 and 2019, if interest rates on borrowings had been 1% higher/lower with all other variables held constant, post-tax profit for the six-month periods ended June 30, 2020 and 2019 would have been $986,434 and $935,857 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.
ii. The Group manages their credit risk taking into consideration the entire group’s concern. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors.
iii. The Group adopts following assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition: If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.
iv. As the Group’s historical credit losses experience does not show significantly different loss patterns for different customer segments which are worldwide and in a wide range without connection, so there is no credit risk concentration for notes and accounts receivable as well as contract assets. Therefore, the provision for losses is not further distinguished according to different segments of the Group’s customer base.
v. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. As of June 30, 2020, December 31, 2019 and June 30, 2019, the Group has no written-off financial assets that are still under recourse procedures.
vi. The Group used the forecastability to adjust historical, timely information, economic conditions of the industry, GDP forecast and trade growth rate to assess the default possibility of accounts receivable (including related parties), contract assets and overdue receivable. As of June 30, 2020, December 31, 2019 and June 30, 2019, the loss rate methodology is as follows:

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Accounts receivable (including related parties)

==> picture [428 x 506] intentionally omitted <==

----- Start of picture text -----

At June 30, 2020 Total book value Expected loss rate Loss allowance
Not past due $ 12,411,939 0.0049%~0.8508% $ 6,871
Up to 30 days 2,030,759 0.0149%~0.4689% 1,326
31 to 180 days 141,699 0.0085%~1.5533% 171
Over 180 days 70,865 0.0349%~15.3460% 1,113
Total $ 14,655,262 $ 9,481
Contract assets
At June 30, 2020 Total book value Expected loss rate Loss allowance
Not past due $ 1,186,452 0%~0.0067% $ 114
Total $ 1,186,452 $ 114
Overdue receivable
At June 30, 2020 Total book value Expected loss rate Loss allowance
Over 180 days $ 264,667 100% $ 264,667
Total $ 264,667 $ 264,667
Accounts receivable
(including related parties)
December 31, 2019 Total book value Expected loss rate Loss allowance
Not past due $ 12,094,901 0.03%~0.08% $ 10,107
Up to 30 days 2,450,297 0.03%~0.08% 2,048
31 to 180 days 226,960 0.03%~0.08% 190
Total $ 14,772,158 $ 12,345
Contract assets
December 31, 2019 Total book value Expected loss rate Loss allowance
Not past due $ 1,694,072 0.03% $ 575
Total $ 1,694,072 $ 575
Overdue receivable
December 31, 2019 Total book value Expected loss rate Loss allowance
Over 180 days $ 269,506 100% $ 269,506
Total $ 269,506 $ 269,506
----- End of picture text -----

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At June 30, 2019 Not past due Up to 30 days 31 to 180 days Total At June 30, 2019 Not past due Total At June 30, 2019 Over 180 days Total	Accounts receivable (including related parties) Totalbookvalue Expectedlossrate 10,625,541 $ 0.03%~0.10% 3,501,570 0.03%~0.10% 1,176,877 0.03%~0.10% 15,303,988 $ Contract assets Totalbookvalue Expectedlossrate 1,655,399 $ 0.03% 1,655,399 $ Overdue receivable Total book value Expected loss rate 278,585 $ 100% 278,585 $	Loss allowance 11,323 $ 3,731 1,254 16,308 $ Loss allowance
		546 $ 546 $
		Loss allowance
		278,585 $
		278,585 $

vii. Movements in relation to the group applying the modified approach to provide loss allowance for notes receivable, accounts receivable (including related parties), contract assets and overdue receivable are as follows:

assets and overdue receivable are as follows:	as follows:
Notes Accounts Contract Overdue receivable receivable assets receivable At January 1 2) ($ 12,345) ($ 575) ($ 269,506) ($ Provision for impairment 7) ( 2,233) ( - - Reversal of impairment loss - 4,614 460 - Reclassifications - - - - Write-offs - - - - Effect of foreign exchange - 483 1 4,839 At June 30 9) ($ 9,481) ($ 114) ($ 264,667) ($ Notes Accounts Contract Overdue receivable receivable assets receivable At January 1 4) ($ 96,468) ($ 692) ($ 202,654) ($ Provision for impairment - 1,806) ( 25 - Reversal of impairment loss 1 15,437 121 - Reclassifications - 66,913 - 66,913) ( Write-offs - 1 - - Effect of foreign exchange 1 385) ( - 9,018) ( At June 30 2) ($ 16,308) ($ 546) ($ 278,585) ($ 2020 2019		2020
			Overdue receivable

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(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group’s Finance Department. Group’s Finance Department monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs.
ii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for nonderivative financial liabilities.

Non-derivative financial liabilities:

Non-derivative financial liabilities:
June 30, 2020 Less than 3 months Notes payable 15,982 $ Accounts payable 14,861,786 $ Accounts payable - related parties 426,927 Other payables 4,604,767 Other payables - related parties 175,468 Bonds payable (including current portion) - Long-term loans (including current portion) 4,577,714 Lease payable and financial liabilities for hedging (including current portion) 3,791,666	Between 3 months and 1year	Between 1 and 2years	Between 2 and5 years	Over 5 years	Total
	- $ 174,770 $ 59,557 231,091 1,610 4,101,200 22,207,124 9,456,546	- $ - - - 4,059,200 24,955,466 11,938,539	- $ - - - 2,017,200 46,662,531 32,780,643	- $ - - 9,554 - 17,216,154 31,839,047	15,982 $ 15,036,556 486,484 4,835,858 186,632 10,177,600 115,618,989 89,806,441

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Non-derivative financial liabilities:

December 31, 2019 Accounts payable Accounts payable - related parties Other payables Other payables - related parties Bonds payable Long-term loans (including current portion) Lease payable and financial liabilities for hedging (including current portion)	Less than 3 months Between 3 months and 1year 16,165,426 $ 4,284 $ 369,044 42,058 4,115,041 288,335 696,438 - 101,200 4,063,463 21,210,732 3,815,715 9,799,502	Between 1 and 2years Between 2 and5 years - $ - $ - - 3,503 - - - 4,101,200 6,076,400 23,999,762 47,550,813 12,274,193 34,201,995	Over 5 years Total - $ 16,169,710 $ - 411,102 - 4,406,879 9,801 706,239 - 10,278,800 17,454,788 114,279,558 34,848,315 94,939,720

Non-derivative financial liabilities:

June 30, 2019 Accounts payable Accounts payable - related parties Other payables Other payables - related parties Bonds payable Long-term loans (including current portion) Lease payable and financial liabilities for hedging (including current portion)	Less than 3 months	Between 3 months and 1year	Between 1 and 2years	Between 2 and5 years	Over 5 years	Total
	17,039,471 $ 126,837 5,396,809 77,347 - 4,616,154 3,598,369	7,811 $ 119,042 216,869 631,441 101,200 19,881,762 8,335,180	- $ - 4,508 - 4,101,200 27,926,838 10,006,334	- $ - 460 - 6,076,400 45,464,578 29,186,053	- $ - 2,095 9,869 - 17,204,960 19,217,613	17,047,282 $ 245,879 5,620,741 718,657 10,278,800 115,094,292 70,343,549

iii. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

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(3) Fair value estimation

A.The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active if it meets all the following conditions: the items traded in the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public. The fair value of the Group’s investment in listed stocks, beneficiary certificates and derivative instruments with quoted market prices is included in Level.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability.
B. Fair value information of investment property at cost is provided in Note 6(10).
C. Financial instruments not measured at fair value
(a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, financial assets measured at amortised cost, accounts payable and other payables are approximate to their fair values.

Financial liabilities: Bonds payable (including current portion) Long-term loans (including current portion) Financial liabilities: Bonds payable Long-term loans (including current portion) Financial liabilities: Bonds payable Long-term loans (including current portion)	June 30,2020	June 30,2020
	Bookvalue 10,000,000 $ 110,908,136 120,908,136 $ December	Fairvalue
		Level3
		10,120,291 $ 115,456,902
		125,577,193 $
		31,2019
	Fairvalue Bookvalue Level3 10,000,000 $ 10,154,063 $ 106,701,568 114,134,001 116,701,568 $ 124,288,064 $ June 30,2019	Fairvalue
		Level3
		10,154,063 $ 114,134,001
		124,288,064 $
	Bookvalue 10,000,000 $ 106,498,734 116,498,734 $	Fairvalue
		Level3
		10,118,734 $ 114,913,675
		125,032,409 $

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D. The related information of financial and	non-financial	non-financial	non-financial	instruments measured at fair value by level	instruments measured at fair value by level	instruments measured at fair value by level	instruments measured at fair value by level	instruments measured at fair value by level	instruments measured at fair value by level	instruments measured at fair value by level
on the basis of the nature, characteristics and risks			of	the assets and liabilities are					as	follows:
(a) The related information of natures of the assets			and liabilities is as follows:
June 30, 2020		Level 1			Level 2		Level3			Total
Assets:
Recurring fair value
measurements
Financial assets at fair value
through other comprehensive
income
Equity securities	$	930,010		$	-	$	528,407		$	1,458,417
Liabilities:
Recurring fair value measurements
Derivative financial liabilities
for hedging	$		-	$	-	$		-	$	18,850,478
December 31, 2019		Level 1			Level 2		Level3			Total
Assets:
Recurring fair value
measurements
Financial assets at fair value
through other comprehensive
income
Equity securities	$	989,850		$	-	$	729,573		$	1,719,423

Liabilities:
Recurring fair value measurements
Derivative financial liabilities
for hedging	$		-	$	-	$		-	$	20,188,942
June 30, 2019		Level 1			Level 2		Level3			Total
Assets:
Recurring fair value
measurements
Financial assets at fair value
through other comprehensive
income
Equity securities	$	892,610		$	-	$	1,005,105		$	1,897,715
Liabilities:
Recurring fair value measurements
Derivative financial liabilities
for hedging	$		-	$	-	$		-	$	16,012,394

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(b) The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares

Market quoted price Closing price

ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date (i.e. yield curves on the Taipei Exchange, average commercial paper interest rates quoted from Reuters).
iii. When assessing non-standard and low-complexity financial instruments, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.
iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo simulation.
v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
vi. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

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E. For the six-month periods ended June 30, 2020 and 2019, there was no transfer between Level 1 and Level 2.
F. The following chart is the movement of Level 3 for the six-month periods ended June 30, 2020 and 2019:

and 2019:
2020 At January 1 729,573 $ Gains and losses recognised in other comprehensive income (Note 1) 201,166) ( At June 30 528,407 $	2019
	800,149 $ 204,956
	1,005,105 $

Note 1: Recorded as unrealised gains or losses on valuation of investments in equity instruments measured at fair value through other comprehensive income and exchange differences on translating the financial statements of foreign operations.
G. For the six-month periods ended June 30, 2020 and 2019, there was no transfer into or out from Level 3.
H. The Group is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.
I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

~96~

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment	Fair value at June 30, 2020	Valuation technique	Significant unobservable input Price to earnings ratio multiple Price to book ratio multiple Discount for lack of marketability Net asset value Significant unobservable input	Range (weighted average)	Relationship of inputs tofairvalue
	521,635 $ 6,772 Fair value at December 31,2019	Market comparable companies Net asset value Valuation technique		7.50~48.56 0.53~2.89 20%~30% Range (weighted average)	The higher the multiple and control premium, the higher the fair value The higher the multiple and control premium, the higher the fair value The higher the weighted average cost of capital and discount for lack of control, the lower the fair value The higher the net asset value, the higher the fair value Relationship of inputs tofairvalue
	722,800 $ 6,773	Market comparable companies Net asset value	Price to earnings ratio multiple Price to book ratio multiple Discount for lack of marketability Net asset value	8.82~46.24 0.54~3.06 20%~30%	The higher the multiple and control premium, the higher the fair value The higher the multiple and control premium, the higher the fair value The higher the weighted average cost of capital and discount for lack of control, the lower the fair value The higher the net asset value, the higher the fair value

~97~

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund investment	Fair value at June 30, 2019	Valuation technique Significant unobservable input Market comparable companies Price to earnings ratio multiple Price to book ratio multiple Discount for lack of marketability Net asset value Net asset value	Range (weighted average)	Relationship of inputs tofairvalue
	998,333 $ 6,772		11.28~43.40 0.52~2.44 20%~30%	The higher the multiple and control premium, the higher the fair value The higher the multiple and control premium, the higher the fair value The higher the weighted average cost of capital and discount for lack of control, the lower the fair value The higher the net asset value, the higher the fair value

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in difference measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets categorised within Level 3 if the inputs used to valuation models have changed:

Input	Change	June 30,2020	June 30,2020	June 30,2020	June 30,2020	June 30,2020	June 30,2020	June 30,2020
		Recognised in profit or loss				Recognised in other comprehensive income
		Favourable change		Unfavourable change		Favourable change	Unfavourable change
Price to earnings ratio/ price to book ratio/ discount for lack of marketability Net asset value	±1% ±1%		- $ - - $		- $ - - $	5,216 $ 68 5,284 $		5,216 $ 68 5,284 $

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Input	Change	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 7,228 $ 7,228 $ - - 68 68 - $ - $ 7,296 $ 7,296 $ December31,2019 Recognised in profit or loss Recognised in other comprehensive income June 30,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 7,228 $ 7,228 $ - - 68 68 - $ - $ 7,296 $ 7,296 $ December31,2019 Recognised in profit or loss Recognised in other comprehensive income June 30,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 7,228 $ 7,228 $ - - 68 68 - $ - $ 7,296 $ 7,296 $ December31,2019 Recognised in profit or loss Recognised in other comprehensive income June 30,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 7,228 $ 7,228 $ - - 68 68 - $ - $ 7,296 $ 7,296 $ December31,2019 Recognised in profit or loss Recognised in other comprehensive income June 30,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 7,228 $ 7,228 $ - - 68 68 - $ - $ 7,296 $ 7,296 $ December31,2019 Recognised in profit or loss Recognised in other comprehensive income June 30,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 7,228 $ 7,228 $ - - 68 68 - $ - $ 7,296 $ 7,296 $ December31,2019 Recognised in profit or loss Recognised in other comprehensive income June 30,2019	Favourable change Unfavourable change Favourable change Unfavourable change - $ - $ 7,228 $ 7,228 $ - - 68 68 - $ - $ 7,296 $ 7,296 $ December31,2019 Recognised in profit or loss Recognised in other comprehensive income June 30,2019
Price to earnings ratio/ price to book ratio/ discount for lack of marketability Net asset value Input	±1% ±1% Change							7,228 $ 68 7,296 $
			Recognised in profit or loss			Recognised in other comprehensive income
		Favourable change		Unfavourable change		Favourable change	Unfavourable change
Price to earnings ratio/ price to book ratio/ discount for lack of marketability Net asset value	±1% ±1%		- $ - - $		- $ - - $	9,983 $ 68 10,051 $		9,983 $ 68 10,051 $

~99~

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: None.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to table 6.
(2) Information on investees (not including investees in Mainland China)
Names, locations and other information of investee companies (not including investees in Mainland China) ： Please refer to table 7.

(3) Information on investments in Mainland China

A. Basic information: Please refer to table 8.
B.Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Information of major shareholder

Information of major shareholder: Please refer to table 9.

14. SEGMENT INFORMATION

(1) General information

Management has determined the operating segments based on the reports reviewed by the chief operating decision-maker that are used to make strategic decisions.

There is no material change in the basis for formation of entities and division of segments in the Group or in the measurement basis for segment information in this period.

~100~

(2) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

is as follows:
						Six-monthperiod endedJune30,2020
			Transportation			Other		Adjustments and
			Department			Departments		written-off		Total
Revenue from
external customers		$	86,847,201		$	498,800	$	-	$	87,346,001
Revenue from
internal customers			13,967,797			-	(	13,967,797)		-
Segment revenue			100,814,998			498,800	(	13,967,797)		87,346,001
Interest income			214,431			11,040		-		225,471
Interest expense	(		2,547,096)	(		3,743)		-	(	2,550,839)
Depreciation
and amortisation	(		10,525,637)	(		125,227)		-	(	10,650,864)
Share of income (loss) of
associates and joint
ventures accounted for
using equity method	(		25,548)	(		43,511)		-	(	69,059)
Other items	(		70,110,227)	(		519,766)		-	(	70,629,993)
Segment profit (loss)		$	17,820,921	($		182,407)	($	13,967,797)	$	3,670,717
Recognizable assets		$	270,102,210		$	8,763,457	$	-	$	278,865,667
Investments accounted for
using equity method			22,844,616			5,564,052		-		28,408,668
Segment assets		$	292,946,826		$	14,327,509	$	-	$	307,274,335
Segment liabilities		$	231,013,853		$	953,391	$	-	$	231,967,244

~101~

						Six-monthperiod endedJune30,2019	Six-monthperiod endedJune30,2019	Six-monthperiod endedJune30,2019
			Transportation			Other		Adjustments and
			Department			Departments		written-off		Total
Revenue from
external customers		$	91,834,933		$	973,860	$	-	$	92,808,793
Revenue from
internal customers			15,436,448			-	(	15,436,448)		-
Segment revenue			107,271,381			973,860	(	15,436,448)		92,808,793
Interest income			371,592			13,982		-		385,574
Interest expense	(		2,769,557)	(		5,325)		-	(	2,774,882)
Depreciation
and amortisation	(		9,990,416)	(		128,847)		-	(	10,119,263)
Share of loss of
associates and joint
ventures accounted for
using equity method			581,111	(		306,094)		-		275,017
Other items	(		79,016,214)	(		1,015,060)		-	(	80,031,274)
Segment profit (loss)		$	16,447,897	($		467,484)	($	15,436,448)	$	543,965
Recognizable assets		$	262,850,637		$	9,753,629	$	-	$	272,604,266
Investments accounted for
using equity method			22,246,054			6,019,335		-		28,265,389
Segment assets		$	285,096,691		$	15,772,964	$	-	$	300,869,655
Segment liabilities		$	228,414,454		$	1,066,200	$	-	$	229,480,654

(3) Reconciliation for segment income (loss)

A. Sales between segments are carried out at arm’s length. The revenue from external parties reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.
B. The amounts provided to the chief operating decision-maker with respect to total assets are measured in a manner consistent with that in the balance sheet.
C. The amounts provided to the chief operating decision-maker with respect to total liabilities are measured in a manner consistent with that in the balance sheet.
D. The amounts provided to the chief operating decision-maker with respect to segment profit (loss) are measured in a manner consistent with the income (loss) before tax from continuing operations.

~102~

Evergreen Marine Corporation (Taiwan) Ltd. Loans to others For the six-month period ended June 30, 2020

Table 1

Expressed in thousands of TWD

Number (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the six-month period ended June 30, 2020 (Note 3)	Balance at June 30, 2020 (Note 8)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with borrower (Note 5)	Reason for short-term financing (Note 6)	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)
													Item	Value
1	Peony Investment S.A.	Luanta Investment (Netherlands) N.V.	Receivables from related parties	Yes	63,674 $	61,866 $	58,920 $	1.27375~ 1.27950	2	- $	Working capital requirement	- $	None	- $	5,478,416 $	13,696,039 $
1	Peony Investment S.A.	Clove Holding Ltd.	Receivables from related parties	Yes	782,282	589,200	574,470	1.17663~ 1.29013	2	-	Working capital requirement	-	None	-	10,956,831	13,696,039
1	Peony Investment S.A.	Colon Container Terminal S.A.	Receivables from related parties	Yes	241,572	241,572	241,572	1.27363~ 1.27663	2	-	Working capital requirement	-	None	-	5,478,416	13,696,039
2	Clove Holding Ltd.	Colon Container Terminal S.A.	Receivables from related parties	Yes	539,714	353,520	353,520	1.27663~ 1.29800	2	-	Working capital requirement	-	None	-	536,146	1,072,293
3	Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal S.A.	Receivables from related parties	Yes	133,896	133,896	133,896	1.27363~ 1.29000	2	-	Working capital requirement	-	None	-	1,139,513	2,279,025
4	Everport Terminal Services	Whitney Equipment LLC.	Receivables from related parties	Yes	265,140	265,140	265,140	2.555~ 2.555	2	-	Working capital requirement	-	None	-	408,718	1,021,794

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1)The Company is ‘0’.

(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Fill in the name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc. Note 3: Fill in the maximum outstanding balance of loans to others during the six-month period ended June 30, 2020

Note 4: The column of‘Nature of loan’ shall fill in 1.‘Business transaction’ or 2.‘Short-term financing’.

Note 5: Fill in the amount of business transactions when nature of the loan is related to business transactions, which is the amount of business transactions occurred between the creditor and borrower in the current period. Note 6: Fill in purpose of loan when nature of loan is for short-term financing, for example, repayment of loan, acquisition of equipment, working capital, etc.

Note 7: Fill in limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company’s “Procedures for Provision of Loans”, and state each individual party to which the loans have been provided and the calculation for ceiling on total loans granted in the footnote.

According to the Company's credit policy, the total amount of loans granted to a single company should not exceed 20% of the net worth stated in the latest financial statements. PEONY ： USD 929,80629.460020%=5,478,416

Clove Holding Ltd. ： USD 90,99629.460020%=536,146 Evergreen Marine (Hong Kong) Ltd. ： USD 193,40029.460020%=1,139,513 Everport Terminal Services ： USD 69,36829.460020%=408,718

The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted to a single company should not exceed 40% of the net worth stated in the latest financial statements. PEONY ： USD 929,80629.460040%=10,956,831

According to the Company's credit policy, the total amount of loans granted should not exceed 40% of the net worth stated in the latest financial statements. Clove Holding Ltd. ： USD 90,99629.460040%=1,072,293 Evergreen Marine (Hong Kong) Ltd. ： USD 193,40029.460040%=2,279,025

The Company held 100% voting shares directly and indirectly in foreign company, that the total amount of loans granted should not exceed 50% of the net worth stated in the latest financial statements. PEONY ： USD 929,80629.460050%=13,696,039 Everport Terminal Services ： USD 69,36829.460050%=1,021,794

Note 8: The amounts of funds to be loaned to others which have been approved by the Board of Directors of a public company in accordance with Article 14, Item 1 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies” should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated. However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the Board of Directors of a public company has authorized the Chairman to loan funds in instalments or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”, the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the Board of Directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration that they could be loaned again thereafter.

Note 9: This transaction was written off when the consolidated financial statements were prepared.

Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others For the six-month period ended June 30, 2020

Table 2

Expressed in thousands of TWD

Number (Note 1)	Endorser/Guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarntees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of June 30, 2020 (Note 4)	Outstanding endorsement/ guarantee amount at June 30, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)
		Company name	Relationship with the endorser/ guarantor (Note 2)
0	Evergreen Marine Corporation	Greencompass Marine S.A.	2	143,670,451 $	52,023,307 $	50,057,492 $	29,835,036 $	- $	69.68%	179,588,063 $	Y	N	N
0	Evergreen Marine Corporation	Peony Investment S.A.	2	143,670,451	151,605	147,300	-	-	0.21%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Evergreen Marine (UK) Limited	2	143,670,451	34,362,054	33,728,921	29,074,125	-	46.95%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Whitney Equipment LLC.	2	143,670,451	104,254	101,294	50,132	-	0.14%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Colon Container Terminal S.A.	6	35,917,613	2,323,801	1,126,550	757,711	-	1.57%	179,588,063	N	N	N
0	Evergreen Marine Corporation	Balsam Investment (Netherlands) N.V.	6	35,917,613	891,437	866,124	721,770	-	1.21%	179,588,063	N	N	N
0	Evergreen Marine Corporation	Everport Terminal Services Inc.	2	143,670,451	2,657,778	2,562,275	964,831	-	3.57%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Evergreen Marine (Hong Kong) Ltd.	2	143,670,451	33,589,686	31,829,843	17,720,511	-	44.31%	179,588,063	Y	N	N
1	Evergreen Marine (Hong Kong) Ltd.	Ever Shine (Shanghai) Enterprise Management Consulting Co., Ltd.	2	11,395,127	36,357	-	-	-	-	14,243,909	Y	N	Y
1	Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal S.A.	6	2,848,782	522,855	253,474	170,485	-	4.45%	14,243,909	N	N	N
1	Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine (Hong Kong) Ltd.	2	11,395,127	2,329,180	702,363	551,856	-	12.33%	14,243,909	N	N	N

Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others For the six-month period ended June 30, 2020

Table 2

Expressed in thousands of TWD

Number (Note 1)	Endorser/Guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarntees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of June 30, 2020 (Note 4)	Outstanding endorsement/ guarantee amount at June 30, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)	Footnote
		Company name	Relationship with the endorser/ guarantor (Note 2)
2	Greencompass Marine S.A.	Everport Terminal Services Inc.	1	7,366,452 $	150,065 $	147,300 $	147,300 $	- $	1.00%	36,832,259 $	N	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:

(1) Having business relationship.
(2) The endorser/guarantor parent company directly and indirectly owns more than 50% voting shares of the endorsed/guaranteed company.
(3) The endorsed/guaranteed parent company directly and indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
(4) The parent company directly or indirectly owns more than 90% voting shares of the companies that make endorsements/guarantees for each other.
(5) The parent company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
(6) Due to joint venture, all capital contributing shareholders make endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s “Procedures for Provision of Endorsements and
Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote. The calculation is as follows:

The Company: 71,835,225*250% = 179,588,063

Limit on endorsement or guarantees provided by the Company for a single entity is $35,917,613 (Amounting to 50% of its net worth).

(When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to $143,670,451.)

According to the credit policy of Evergreen Marine (Hong Kong) Ltd., the calculation for total amount of endorsements/guarantees is as follows:

Ceiling on total amount of endorsements/guarantees: USD 193,40029.46250% = 14,243,909

Limit on endorsements or guarantees provided for a single entity ： 2,848,782 (Amounting to 50% of its net worth).

(When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to $11,395,127.)
According to the credit policy of Greencompass Marine S.A., the calculation for total amount of endorsements/guarantees is as follows:

Ceiling on total amount of endorsements/guarantees: USD 500,09929.46250% = 36,832,259

Limit on endorsements or guarantees provided for a single entity ： 7,366,452 (Amounting to 50% of its net worth).

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: Fill in ‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary, provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Evergreen Marine Corporation (Taiwan) Ltd.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) For the six-month period ended June 30, 2020

	For the six-month period ended June 30, 2020	For the six-month period ended June 30, 2020	For the six-month period ended June 30, 2020
Table 3				Expressed in thousands of shares/thousands of TWD/thousands of foreign currency (Except as otherwiseindicated)
Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	Genearl ledger account	As of June 30, 2020				Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
Evergreen Marine Corporation	Stock:
	Power World Fund Inc.		Financial asset measured at fair value through other comprehensive income - non-current	677	6,772 $	5.68%	6,772 $
	Linden Technologies, Inc.		`〃`	50	3,935	1.44%	3,935
	TopLogis, Inc.		`〃`	2,464	27,876	17.48%	27,876
	Ever Accord Construction Corp.	Other related party	`〃`	10,500	129,720	17.50%	129,720
	Central Reinsurance Corp.		`〃`	49,866	930,010	8.45%	930,010
	Financial bonds:
	Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015		Financial asset measured at atmortised cost - non-current	-	50,000	-	50,000
	Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017		`〃`	-	50,000	-	50,000
Peony Investment S.A.	Hutchison Inland Container Depots Ltd.		Financial asset measured at fair value through other comprehensive income - non-current	0.75	USD 178	5.27%	USD 178
	South Asia Gateway Terminals (Private) Ltd.		`〃`	18,942	USD 12,035	5.00%	USD 12,035
Evergreen Shipping Agency (Europe) GmbH	Zoll Pool Hafen Hamburg AG		`〃`	10	EUR 10	2.86%	EUR 10

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS9, 'Financial instruments: recognition and measurement'. Note 2: Leave the column blank if the issuer of marketable securities is non-related party. Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Evergreen Marine Corporation (Taiwan) Ltd.

Purchases or sales of goods from or to related parties reaching TWD 100 million or 20% of paid-in capital or more

For the six-month period ended June 30, 2020

Table 4

Expressed in thousands of TWD/thousands of foreign currency

									(Except as	(Except as	otherwise indicated)
Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions (Note 1)		Notes/accounts receivable (payable)		Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine Corporation	Everport Terminal Services Inc.	Subsidiary	Purchases	$ 688,889	3%	30~60 days	$ -	-	($ 95,922)	3%
	Greencompass Marine S.A.	Subsidiary	Purchases	853,411	3%	30~60 days	-	-	( 441)	-
			Sales	1,128,686	4%	30~60 days	-	-	6,214	-
	Taiwan Terminal Services Co., Ltd.	Subsidiary	Purchases	411,430	1%	30~60 days	-	-	( 63,763)	2%
	Italia Marittima S.p.A.	Associates	Purchases	142,587	1%	30~60 days	-	-	( 4,550)	-
			Sales	175,461	1%	30~60 days	-	-	233	-
	Evergreen International Storage and Transport Corp.	Associates	Purchases	182,983	1%	30~60 days	-	-	( 15,893)	-
	Evergreen Shipping Agency (America) Corporation	Other related parties	Purchases	143,771	1%	30~60 days	-	-	-	-
	Evergreen International Corp.	Other related parties	Purchases	269,658	1%	30~60 days	-	-	( 41,996)	1%
	Evergreen Marine (UK) Limited	Subsidiary	Purchases	304,344	1%	30~60 days	-	-	( 44,853)	1%
			Sales	373,578	2%	30~60 days	-	-	982	-
	Evergreen Marine (Singapore) Pte. Ltd.	Other related parties	Purchases	222,310	1%	30~60 days	-	-	( 20,819)	1%
			Sales	837,420	4%	30~60 days	-	-	555	-
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary	Purchases	427,321	2%	30~60 days	-	-	( 18,158)	1%
			Sales	426,997	2%	30~60 days	-	-	91	-
	Evergreen Shipping Agency (Europe) GmbH (EEU)	Subsidiary	Purchases	149,450	1%	30~60 days	-	-	-	-

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine Corporation	Evergreen International S.A.(EIS)	Other related parties	Sales	$ 139,088	1%	30~60 days	$ -	-	$ -	-
	Gaining Enterprise S.A.	Other related parties	Purchases	299,795	1%	30~60 days	-	-	-	-
Taiwan Terminal Services Co.,Ltd.	Evergreen Marine Corp.	The parent	Sales	411,430	100%	30~60 days	-	-	63,763	99%	(Note)
Everport Terminal Services Inc.	Evergreen Marine Corp.	The parent	Sales	USD 22,962	12%	30~60 days	-	-	3,256 USD	11%	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 48,655	26%	30 days	-	-	6,135 USD	20%
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 12,942	7%	30 days	-	-	1,329 USD	4%	(Note)
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 36,381	19%	30 days	-	-	4,685 USD	16%	(Note)
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 17,656	9%	30 days	-	-	2,412 USD	8%	(Note)
Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine Corp.	The parent	Sales	USD 14,244	3%	30~60 days	-	-	616 USD	-	(Note)
			Purchases	USD 14,233	3%	30~60 days	-	-	3) (USD	-	(Note)
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 19,169	4%	30~60 days	-	-	20 USD	-	(Note)
			Purchases	USD 14,692	3%	30~60 days	-	-	581) (USD	1%	(Note)
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Sales	USD 4,331	1%	30~60 days	-	-	-	-
			Purchases	USD 17,325	4%	30~60 days	-	-	763) (USD	1%
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 23,374	5%	30~60 days	-	-	-	-
			Purchases	USD 5,210	1%	30~60 days	-	-	36) (USD	-
	Evergreen International Corp.	Investee of the Parent Company's major shareholder	Sales	USD 3,405	1%	30~60 days	-	-	148 USD	-
			Purchases	USD 6,755	2%	30~60 days	-	-	-	-
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 10,332	2%	30~60 days	-	-	20 USD	-	(Note)

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Purchases	USD 45,414	10%	30~60 days	$ -	-	436) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 17,656	4%	30 days	-	-	2,412) (USD	2%	(Note)
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 4,217	1%	30~60 days	-	-	1) (USD	-
	Master International Shipping Agency Co., Ltd.	Indirect subsidiary of the Parent Company	Purchases	USD 14,047	3%	30~60 days	-	-	2,308) (USD	2%	(Note)
Greencompass Marine S.A.	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 16,537	1%	30~60 days	-	-	1,033 USD	1%	(Note)
			Purchases	USD 11,870	1%	30~60 days	-	-	439) (USD	-	(Note)
	Evergreen Marine Corp.	The parent	Sales	USD 28,446	2%	30~60 days	-	-	15 USD	-	(Note)
			Purchases	USD 37,622	3%	30~60 days	-	-	211) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 12,942	1%	30 days	-	-	1,329) (USD	1%	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 39,448	3%	30~60 days	-	-	1,701 USD	1%
			Purchases	USD 12,139	1%	30~60 days	-	-	3,270) (USD	1%
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Sales	USD 9,820	1%	30~60 days	-	-	-	-
			Purchases	USD 17,557	2%	30~60 days	-	-	-	-
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 8,424	1%	30~60 days	-	-	-	-
	Evergreen International Corp.	Investee of the Parent Company's major shareholder	Purchases	USD 6,015	1%	30~60 days	-	-	-	-
	Evergreen Shipping Agency (Europe) GmbH	Indirect subsidiary of the Parent Company	Purchases	USD 4,588	-	30~60 days	-	-	-	-	(Note)
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 14,692	1%	30~60 days	-	-	581 USD	-	(Note)
			Purchases	USD 19,169	2%	30~60 days	-	-	20) (USD	-	(Note)
Evergreen Marine (UK) Limited	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 11,870	2%	30~60 days	-	-	439 USD	-	(Note)

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine (UK) Limited	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Purchases	USD 16,537	3%	30~60 days	$ -	-	1,033) (USD	1%	(Note)
	Evergreen Marine Corp.	The Parent	Sales	USD 10,144	2%	30~60 days	-	-	1,523 USD	1%	(Note)
			Purchases	USD 12,452	2%	30~60 days	-	-	33) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 36,381	7%	30 days	-	-	4,685) (USD	3%	(Note)
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Purchases	USD 3,505	1%	30~60 days	-	-	185) (USD	-
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 15,555	3%	30~60 days	-	-	342 USD	-
			Purchases	USD 3,858	1%	30~60 days	-	-	1,179) (USD	1%
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 9,605	2%	30~60 days	-	-	-	-
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 45,414	8%	30~60 days	-	-	436 USD	-	(Note)
			Purchases	USD 10,332	2%	30~60 days	-	-	20) (USD	-	(Note)
Evergreen Heavy Industrial Corp.(Malaysia) Berhad	Gaining Enterprise S.A.	Investee of EITC	Sales	MYR 70,763	100%	45 days	-	-	25,523 MYR	100%
Evergreen Shipping Agency (Europe) GmbH	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	EUR 4,163	21%	30~60 days	-	-	-	-	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	EUR 5,269	27%	30~60 days	-	-	937 EUR	2%
	Evergreen Marine Corp.	The Parent	Sales	EUR 4,520	23%	30~60 days	-	-	-	-	(Note)
Master International Shipping Agency Co. Ltd.	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	CNY 98,826	100%	30~60 days	-	-	16,343 CNY	100%	(Note)

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions.

Note 3: Paid-in capital referred to herein is the paid-in capital of parent company.

Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching TWD 100 million or 20% of paid-in capital or more June 30, 2020

June 30, 2020	June 30, 2020	June 30, 2020	June 30, 2020	June 30, 2020
Table 5					Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)
Creditor	Counterparty	Relationship with the counterparty	Balance as at June 30, 2020 (Note 1)	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts	Footnote
					Amount	Action taken
Clove Holding Ltd.	Colon Container Terminal, S.A.	Investee of Clove Holding Ltd. accounted for using equity method	USD 12,235	-	- $	-	- $	- $
Evergreen Heavy Industrial Corp. (Malaysia) Berhad	Gaining Enterprise S.A.	Investee of EITC	MYR 25,523	-	-	-	MYR 25,523	-
Peony Investment S.A.	Clove Holding Ltd.	Subsidiary	USD 19,813	-	-	-	-	-	Note
Peony Investment S.A.	Colon Container Terminal, S.A.	Investee of Clove Holding Ltd. accounted for using equity method	USD 8,207	-	-	-	-	-
Everport Terminal Services Inc.	Evergreen Marine (UK) Limited	Indirectly subsidiary of the Parent Company	USD 4,685	-	-	-	USD 4,083	-	Note
Everport Terminal Services Inc.	Evergreen Marine (Singapore) Pte. Ltd.	Other related party	USD 6,135	-	-	-	USD 5,347	-
Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal, S.A.	Investee of Evergreen Marine (Hong Kong) Limited accounted for using equity method	USD 4,547	-	-	-	-	-

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties, etc. Note 2: Paid-in capital referred to herein is the paid-in capital of parent company.

Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the six-month period ended June 30, 2020

Expressed in thousands of TWD

(Except as otherwise indicated)

Table 6

Table 6				Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)
Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 2 2	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	Taiwan Terminal Services Co.,Ltd. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Shipping Agency (Europe) GmbH Everport Terminal Services Inc. Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. Evergreen Marine (UK) Limited Greencompass Marine S.A. Evergreen Marine (Hong Kong) Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3	Operating cost Shipowner's account - credit Operating revenue Operating cost Shipowner's account - debit Operating revenue Operating cost Shipowner's account - credit Operating revenue Operating cost Operating cost Operating cost Shipowner's account - debit Operating cost Operating cost Operating cost Operating cost Shipowner's account - debit Operating cost Operating revenue	411,430 $ 102,382 1,128,686 853,411 217,328 373,578 304,344 370,095 426,997 427,321 149,450 688,889 100,518 356,118 137,639 575,076 388,266 303,831 496,118 1,362,465	Note 4 " " " " " " " " " " " " " " " " " " "	0.47 0.03 1.29 0.98 0.07 0.43 0.35 0.12 0.49 0.49 0.17 0.79 0.03 0.41 0.16 0.66 0.44 0.10 0.57 1.56

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)		Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
2 2 2 2 3 3 3 3 4	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Peony Investment S.A.	Evergreen Marine (Hong Kong) Ltd. Evergreen Shipping Agency (Europe) GmbH Everport Terminal Services Inc. Everport Terminal Services Inc. Greencompass Marine S.A. Everport Terminal Services Inc. Evergreen Shipping Agency (China) Co., Ltd. Evergreen Marine (UK) Limited Clove Holding Ltd.	3 3 3 3 3 3 3 3 3	Operating cost Shipowner's account - credit Operating cost Account payables Operating cost Operating cost Operating cost Shipowner's account - credit Other receivables	309,967 $ 112,422 1,091,474 138,025 440,776 529,682 421,416 139,430 583,684	Note 4 " " " " " " " "	0.35 0.04 1.25 0.04 0.50 0.61 0.48 0.05 0.19

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from '1'.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; Fill in the number of category each case belongs to (If transactions between parent company and subsidiaries or between

subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.):

(1) Parent company to subsidiary.
(2) Subsidiary to parent company
(3) Subsidiary to subsidiary

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: Terms are approximately the same as for general transactions.

Evergreen Marine Corporation (Taiwan) Ltd.

Table 7

Expressed in thousands of shares/thousands of TWD

Information on investees (not including investee company of Mainland China)

For the six-month period ended June 30, 2020

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Evergreen Marine Corp.	Peony Investment S.A.	Republic of Panama	Investment activities	14,301,195 $	14,301,195 $	4,765	100.00	27,307,366 $	1,607,717 $	1,624,788 $	Subsidiary of the Company (Note)
	Taiwan Terminal Services Co., Ltd.	Taiwan	Loading and discharging operations of container yards	55,000	55,000	5,500	55.00	53,224	2,366) (	1,301) (	`〃`(Note)
	Everport Terminal Services Inc.	U.S.A	Terminal services	3,001	3,001	1	94.43	1,778,968	118,044	111,467	`〃`(Note)
	Evergreen Marine (Hong Kong) Ltd.	Hong Kong	Marine transportation	6,283,222	6,283,222	6,320	79.00	7,775,366	987,171	737,986	`〃`(Note)
	Evergreen Shipping Agency (Israel) Ltd.	Israel	Shipping agency	9,103	9,103	1,062	59.00	30,680	16,721	9,865	`〃`(Note)
	Charng Yang Development Co.,Ltd.	Taiwan	Development, rental, sale of residential and commercial buildings	320,000	320,000	58,542	40.00	522,864	83,785	33,514	Investee accounted for using equity method
	Evergreen International Storage and Transport Corporation	Taiwan	Container transportation and gas stations	4,840,408	4,840,408	430,692	40.36	8,891,012	365,635	147,568	`〃`
	Evergreen Security Corporation	Taiwan	General security guards services	25,000	25,000	6,336	31.25	107,571	20,923	6,538	`〃`
	EVA Airways Corporation	Taiwan	International passengers and cargo transportation	11,276,823	11,276,823	776,541	16.00	10,959,263	1,834,366) (	293,487) (	`〃`
	Taipei Port Container Terminal Corporation	Taiwan	Container distribution and cargo stevedoring	1,446,196	1,094,073	144,799	27.85	1,481,822	173,982	46,583	`〃`
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	-	3,151	-	-	-	443	39	`〃`
	VIP Greenport Joint Stock Company	Vietnam	Terminal services	178,750	178,750	13,750	21.74	280,132	95,375	20,734	`〃`
Peony Investment S.A.	Clove Holding Ltd.	British Virgin Islands	Investment holding company	1,548,102	1,548,102	10	100.00	2,680,731	2,091	2,091	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Agency (Europe) GmbH	Germany	Shipping agency	244,989	244,989	-	100.00	302,314	15,748	15,748	`〃`(Note)
	Evergreen Shipping Agency (Korea) Corporation	South Korea	Shipping agency	71,470	71,470	121	100.00	45,585	12,446	12,446	`〃`(Note)
	Greencompass Marine S.A.	Republic of Panama	Marine transportation	10,414,110	10,414,110	3,535	100.00	14,732,903	1,177,361	1,177,361	`〃`(Note)
	Evergreen Shipping Agency (India) Pvt. Ltd.	India	Shipping agency	34,666	34,666	100	99.99	166,093	18,518	18,517	`〃`(Note)
	Evergreen Argentina S.A.	Argentina	Leasing	4,124	4,124	150	95.00	41,646	1,431) (	1,360) (	`〃`(Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Peony Investment S.A.	PT. Multi Bina Pura International	Indonesia	Loading and discharging operations of container yards and inland transportation	251,174 $	230,994 $	17	95.03	612,644 $	41,847 $	39,768 $	Indirect subsidiary of the Company (Note)
	PT. Multi Bina Transport	Indonesia	Container repair, cleaning and inland transportation	23,695	23,695	2	17.39	13,473	4,263) (	741) (	`〃`(Note)
	Evergreen Heavy Industrial Corp. (Malaysia) Berhad	Malaysia	Container manufacturing	804,106	804,106	42,120	84.44	901,382	4,975	4,201	`〃`(Note)
	Evergreen Shipping (Spain) S.L.	Spain	Shipping agency	198,717	198,717	6	100.00	198,570	57,432	57,432	`〃`(Note)
	Evergreen Shipping Agency (Italy) S.p.A.	Italy	Shipping agency	69,290	69,290	1	55.00	70,870	378	208	`〃`(Note)
	Evergreen Marine (UK) Limited	U.K	Marine transportation	3,950,664	3,950,664	765	51.00	864,258	159,419	81,304	`〃`(Note)
	Evergreen Shipping Agency (Australia) Pty. Ltd.	Australia	Shipping agency	50,329	50,329	1	100.00	34,900	28,015	28,015	`〃`(Note)
	Evergreen Shipping Agency (Russia) Ltd.	Russia	Shipping agency	24,982	24,982	-	51.00	23,411	45,548	23,229	`〃`(Note)
	Evergreen Shipping Agency (Thailand) Co., Ltd.	Thailand	Shipping agency	66,079	66,079	680	85.00	63,221	25,204	21,424	`〃`(Note)
	Evergreen Agency (South Africa) (Pty) Ltd.	South Africa	Shipping agency	17,116	17,116	5,500	55.00	64,364	15,418	8,480	`〃`(Note)
	Evergreen Shipping Agency (Vietnam) Corp.	Vietnam	Shipping agency	36,265	36,265	-	100.00	428,155	89,032	89,032	`〃`(Note)
	PT. Evergreen Shipping Agency Indonesia	Indonesia	Shipping agency	28,665	28,665	0.441	49.00	99,334	31,386	15,379	Investee company of Peony accounted for using equity method
	Luanta Investment (Netherlands) N.V.	Curaçao	Investment holding company	1,400,507	1,400,507	460	50.00	1,849,171	1,528) (	764) (	`〃`
	Balsam Investment (Netherlands) N.V.	Curaçao	Investment holding company	12,305,042	12,305,042	0.451	49.00	407,923	299,478) (	146,744) (	`〃`
	Evergreen Shipping Agency Co. (U.A.E.) LLC	United Arab Emirates	Shipping agency	61,336	61,336	-	49.00	83,174	91,780	44,972	`〃`
	Greenpen Properties Sdn. Bhd.	Malaysia	Renting estate and storehouse company	12,551	12,551	1,500	30.00	32,128	2,597	779	`〃`
	Evergreen Marine Corp. (Malaysia) SDN.BHD.	Malaysia	Shipping agency	277,342	277,342	500	100.00	921,823	118,505	118,505	Indirect subsidiary of the Company (Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Peony Investment S.A.	Evergreen Marine (Hong Kong) Ltd.	Hong Kong	Marine transportation	78,069 $	78,069 $	80	1.00	98,422 $	987,171 $	9,342 $	Investee company of Peony accounted for using equity method
	Ics Depot Services Snd. Bhd.	Malaysia	Depot services	32,818	32,818	286	28.65	64,901	13,887	3,978	`〃`(Note)
Clove Holding Ltd.	Colon Container Terminal, S.A.	Republic of Panama	Inland container storage and loading	673,456	673,456	22,860	40.00	2,538,757	4,939) (	1,975) (	Investee company of Clove Holding Ltd. accounted for using equity method
	Everport Terminal Services Inc.	U.S.A	Terminal services	191,606	191,606	0.059	5.57	264,619	118,044	6,577	Indirect subsidiary of the Company (Note)
Everport Terminal Services Inc.	Whitney Equipment LLC.	U.S.A	Equipment Leasing Company	5,892	5,892	-	100.00	225,552	9,751	9,751	`〃`(Note)
PT. Multi Bina Pura International	PT. Multi Bina Transport	Indonesia	Container repair cleaning and inland transportation	97,260	97,260	8	72.95	56,519	4,263) (	3,110) (	`〃`(Note)
Evergreen Marine (Hong Kong) Limited	Colon Container Terminal S.A.	Republic of Panama	Inland container storage and loading	459,576	459,576	5,144	9.00	591,655	4,939) (	444) (	Investee company of Evergreen Marine (Hong Kong) Limited accounted for using equity method
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	17,676	2,917	600	100.00	18,293	443	443	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Service (Cambodia) Co., Ltd.	Cambodia	Shipping agency	5,892	5,892	200	100.00	53,038	17,255	17,255	〃(Note)
	Evergreen Shipping Agency (Peru) S.A.C.	Peru	Shipping agency	8,178	8,178	900	60.00	35,668	46,712	28,027	`〃`(Note)
	Evergreen Shipping Agency (Colombia) S.A.S	Colombia	Shipping agency	10,341	10,341	80	75.00	31,820	32,080	24,060	`〃`(Note)
	Evergreen Shipping Agency Mexico S.A. de C.V.	Mexico	Shipping agency	6,753	6,753	44	60.00	20,424	24,538	14,723	`〃`(Note)
	Evergreen Shipping Agency (Chile) SPA.	Chile	Shipping agency	9,392	9,392	2	60.00	24,783	22,515	13,509	`〃`(Note)
	Evergreen Shipping Agency (Greece) Societe Anonyme.	Greece	Shipping agency	7,963	7,963	2	60.00	29,169	19,524	11,715	`〃`(Note)
	Evergreen Shipping Agency (Isrrael) Ltd.	Isrrael	Shipping agency	150	150	18	1.00	520	16,721	167	`〃`(Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Evergreen Marine (Hong Kong) Limited	Evergreen Shipping Agency (Brazil) Ltd.	Brazil	Shipping agency	7,288 $	- $	120	60.00	6,542 $	- $	- $	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Agency Lanka (Private) Ltd.	Lanka	Shipping agency	3,571	3,571	2,160	40.00	10,296	33,338	13,335	Investee company of Evergreen Marine (Hong Kong) Limited accounted for using equity method

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, ‘Initial investment amount’ and ‘Shares held as at June 30, 2020’ should fill orderly in the Company’s (public company’s) information on investees and every
directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.
(2) The ‘Net profit (loss) of the investee for the six-month period ended June 30, 2020’ column should fill in amount of net profit (loss) of the investee for this period.
(3) The‘Investment income (loss) recognised by the Company for the six-month period ended June 30, 2020’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and
recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Evergreen Marine Corporation (Taiwan) Ltd.

Information on investments in Mainland China

For the six-month period ended June 30, 2020

Table 8

Expressed in thousands of TWD

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020	Net income (loss) of the investee for the six-month period ended June 30, 2020	Ownership held by the Company (direct of indirect) (%)	Investment income (loss) recognised by the Company. For the six-month period ended June 30, 2020 (Note 2(2)B)	Book value of investments in Mainland China as of June 30, 2020	Accumulted amount of investment income remitted back to Taiwan as of June 30, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Ningbo Victory Container Co., Ltd.	Inland container transportation, container storage, loading, discharging, repair and related activities	519,942 $	(2)	210,978 $	- $	- $	210,978 $	19,682 $	40.00	7,873 $	305,381 $	- $
Qingdao Evergreen Container Storage & Transportation Co., Ltd.	Inland container transportation, storage, loading, discharging, repair, cleaning and related activities	176,817	(2)	41,740	-	-	41,740	75,820	40.00	30,328	183,281	-
Kingtrans Intl. Logistics (Tianjin) Co., Ltd.	Inland container transportation, storage, loading, discharging, repair, cleaning and related activities	324,217	(2)	278,847	-	-	278,847	22,348	46.20	10,325	190,289	-	(Note)
Ever Shine (Shanghai) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	1,807,596	(2)	2,399,822	-	-	2,399,822	16,941	80.00	23,267) (	3,065,530	-	(Note)
Ever Shine (Ningbo) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	178,897	(2)	265,490	-	-	265,490	182	80.00	174	141,667	-	(Note)
Ever Shine (Shenzhen) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	255,226	(2)	461,947	-	-	461,947	2,065	80.00	2,335) (	385,466	-	(Note)
Ever Shine (Qingdao) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	206,938	(2)	376,569	-	-	376,569	1,767	80.00	77	234,925	-	(Note)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020	Net income (loss) of the investee for the six-month period ended June 30, 2020	Ownership held by the Company (direct of indirect) (%)	Investment income (loss) recognised by the Company. For the six-month period ended June 30, 2020 (Note 2(2)B)	Book value of investments in Mainland China as of June 30, 2020	Accumulted amount of investment income remitted back to Taiwan as of June 30, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Evergreen Shipping Agency (China) Co., Ltd.	Shipping agency	20,802 $	(2)	81,952 $	- $	- $	81,952 $	21,509 $	41.60	9,679) ($	14,123 $	- $	(Note)
Company name Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020 Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA Evergreen Marine Corp. $ 4,117,345 $ 4,660,623 $ 45,184,254
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Evergreen Marine Corp.	$ 4,117,345	$ 4,660,623	$ 45,184,254

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company, Peony Investment S.A. and Evergreen Marine (Hong Kong) Ltd., in the third area, which then invested in the investee in Mainland China.
(3) Others

Note 2: In the ‘Investment income (loss) recognised by the Company for the six-month period ended June 30, 2020’ column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B. The financial statements that are audited and attested by R.O.C. parent company’s CPA.
C. Others.

Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Evergreen Marine Corporation (Taiwan) Ltd. Major shareholders information

For the six-month period ended June 30, 2020

Table 9

Name of major shareholders	Shares	Shares
	Name of shares held	Ownership (%)
Evergreen International S.A.(EIS)	391,786,816	8.14%
Chang, Kuo-Hua	319,646,157	6.64%
Evergreen International Corp.	262,411,866	5.45%

Note 1: The major shareholders information was from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form Note 1: which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. Note 1: The share capital which was recorded in the financial statements may differ from the actual number of shares issued in dematerialised form because of a Note 1: differenent calculation basis.
Note 2: If the aforementioned data contains shares which were kept in trust by the shareholders, the data disclosed was the settlor’s separate account for the fund set by the trustee. Note 2: As for the shareholder who reports share equity as an insider whose shareholding ratio is greater than 10% in accordance with Securities and Exchange Act, the shareholding Note 2: ratio includes the self-owned shares and trusted shares, at the same time, persons who have power to decide how to allocate the trust assets. Note 2: For the information of reported share equity of insider, please refer to Market Observation Post System.

Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others For the six-month period ended June 30, 2020

Table 2

Expressed in thousands of TWD

Number (Note 1)	Endorser/Guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarntees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of June 30, 2020 (Note 4)	Outstanding endorsement/ guarantee amount at June 30, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)
		Company name	Relationship with the endorser/ guarantor (Note 2)
0	Evergreen Marine Corporation	Greencompass Marine S.A.	2	143,670,451 $	52,023,307 $	50,057,492 $	29,835,036 $	- $	69.68%	179,588,063 $	Y	N	N
0	Evergreen Marine Corporation	Peony Investment S.A.	2	143,670,451	151,605	147,300	-	-	0.21%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Evergreen Marine (UK) Limited	2	143,670,451	34,362,054	33,728,921	29,074,125	-	46.95%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Whitney Equipment LLC.	2	143,670,451	104,254	101,294	50,132	-	0.14%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Colon Container Terminal S.A.	6	35,917,613	2,323,801	1,126,550	757,711	-	1.57%	179,588,063	N	N	N
0	Evergreen Marine Corporation	Balsam Investment (Netherlands) N.V.	6	35,917,613	891,437	866,124	721,770	-	1.21%	179,588,063	N	N	N
0	Evergreen Marine Corporation	Everport Terminal Services Inc.	2	143,670,451	2,657,778	2,562,275	964,831	-	3.57%	179,588,063	Y	N	N
0	Evergreen Marine Corporation	Evergreen Marine (Hong Kong) Ltd.	2	143,670,451	33,589,686	31,829,843	17,720,511	-	44.31%	179,588,063	Y	N	N
1	Evergreen Marine (Hong Kong) Ltd.	Ever Shine (Shanghai) Enterprise Management Consulting Co., Ltd.	2	11,395,127	36,357	-	-	-	-	14,243,909	Y	N	Y
1	Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal S.A.	6	2,848,782	522,855	253,474	170,485	-	4.45%	14,243,909	N	N	N
1	Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine (Hong Kong) Ltd.	2	11,395,127	2,329,180	702,363	551,856	-	12.33%	14,243,909	N	N	N

Evergreen Marine Corporation (Taiwan) Ltd. Provision of endorsements and guarantees to others For the six-month period ended June 30, 2020

Table 2

Expressed in thousands of TWD

Number (Note 1)	Endorser/Guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarntees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of June 30, 2020 (Note 4)	Outstanding endorsement/ guarantee amount at June 30, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)	Footnote
		Company name	Relationship with the endorser/ guarantor (Note 2)
2	Greencompass Marine S.A.	Everport Terminal Services Inc.	1	7,366,452 $	150,065 $	147,300 $	147,300 $	- $	1.00%	36,832,259 $	N	N	N

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1)The Company is ‘0’.
(2)The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories; fill in the number of category each case belongs to:

(1) Having business relationship.
(2) The endorser/guarantor parent company directly and indirectly owns more than 50% voting shares of the endorsed/guaranteed company.
(3) The endorsed/guaranteed parent company directly and indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
(4) The parent company directly or indirectly owns more than 90% voting shares of the companies that make endorsements/guarantees for each other.
(5) The parent company fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
(6) Due to joint venture, all capital contributing shareholders make endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7) Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Note 3: Fill in limit on endorsements/guarantees provided for a single party and ceiling on total amount of endorsements/guarantees provided as prescribed in the endorser/guarantor company’s “Procedures for Provision of Endorsements and
Guarantees”, and state each individual party to which the endorsements/guarantees have been provided and the calculation for ceiling on total amount of endorsements/guarantees provided in the footnote. The calculation is as follows:

The Company: 71,835,225*250% = 179,588,063

Limit on endorsement or guarantees provided by the Company for a single entity is $35,917,613 (Amounting to 50% of its net worth).

According to the credit policy of Evergreen Marine (Hong Kong) Ltd., the calculation for total amount of endorsements/guarantees is as follows:

Ceiling on total amount of endorsements/guarantees: USD 193,40029.46250% = 14,243,909

Limit on endorsements or guarantees provided for a single entity ： 2,848,782 (Amounting to 50% of its net worth).

(When the Company owns more than 50% voting shares of the endorsed/guaranteed company, the limit on endorsement or guarantee provided by the Company should not exceed 200% of its net worth, which equals to $11,395,127.)
According to the credit policy of Greencompass Marine S.A., the calculation for total amount of endorsements/guarantees is as follows:

Ceiling on total amount of endorsements/guarantees: USD 500,09929.46250% = 36,832,259

Limit on endorsements or guarantees provided for a single entity ： 7,366,452 (Amounting to 50% of its net worth).

Note 4: Fill in the year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chariman if the chairman has been authorised by the Board of Directors.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Evergreen Marine Corporation (Taiwan) Ltd.

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) For the six-month period ended June 30, 2020

	For the six-month period ended June 30, 2020	For the six-month period ended June 30, 2020	For the six-month period ended June 30, 2020
Table 3				Expressed in thousands of shares/thousands of TWD/thousands of foreign currency (Except as otherwiseindicated)
Securities held by	Marketable securities (Note 1)	Relationship with the securities issuer (Note 2)	Genearl ledger account	As of June 30, 2020				Footnote (Note 4)
				Number of shares	Book value (Note 3)	Ownership (%)	Fair value
Evergreen Marine Corporation	Stock:
	Power World Fund Inc.		Financial asset measured at fair value through other comprehensive income - non-current	677	6,772 $	5.68%	6,772 $
	Linden Technologies, Inc.		`〃`	50	3,935	1.44%	3,935
	TopLogis, Inc.		`〃`	2,464	27,876	17.48%	27,876
	Ever Accord Construction Corp.	Other related party	`〃`	10,500	129,720	17.50%	129,720
	Central Reinsurance Corp.		`〃`	49,866	930,010	8.45%	930,010
	Financial bonds:
	Sunny Bank 2nd Subordinate Financial Debentures-B Issue in 2015		Financial asset measured at atmortised cost - non-current	-	50,000	-	50,000
	Sunny Bank 3rd Subordinate Financial Debentures-B Issue in 2017		`〃`	-	50,000	-	50,000
Peony Investment S.A.	Hutchison Inland Container Depots Ltd.		Financial asset measured at fair value through other comprehensive income - non-current	0.75	USD 178	5.27%	USD 178
	South Asia Gateway Terminals (Private) Ltd.		`〃`	18,942	USD 12,035	5.00%	USD 12,035
Evergreen Shipping Agency (Europe) GmbH	Zoll Pool Hafen Hamburg AG		`〃`	10	EUR 10	2.86%	EUR 10

Evergreen Marine Corporation (Taiwan) Ltd.

Purchases or sales of goods from or to related parties reaching TWD 100 million or 20% of paid-in capital or more

For the six-month period ended June 30, 2020

Table 4

Expressed in thousands of TWD/thousands of foreign currency

									(Except as	(Except as	otherwise indicated)
Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction				Differences in transaction terms compared to third party transactions (Note 1)		Notes/accounts receivable (payable)		Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine Corporation	Everport Terminal Services Inc.	Subsidiary	Purchases	$ 688,889	3%	30~60 days	$ -	-	($ 95,922)	3%
	Greencompass Marine S.A.	Subsidiary	Purchases	853,411	3%	30~60 days	-	-	( 441)	-
			Sales	1,128,686	4%	30~60 days	-	-	6,214	-
	Taiwan Terminal Services Co., Ltd.	Subsidiary	Purchases	411,430	1%	30~60 days	-	-	( 63,763)	2%
	Italia Marittima S.p.A.	Associates	Purchases	142,587	1%	30~60 days	-	-	( 4,550)	-
			Sales	175,461	1%	30~60 days	-	-	233	-
	Evergreen International Storage and Transport Corp.	Associates	Purchases	182,983	1%	30~60 days	-	-	( 15,893)	-
	Evergreen Shipping Agency (America) Corporation	Other related parties	Purchases	143,771	1%	30~60 days	-	-	-	-
	Evergreen International Corp.	Other related parties	Purchases	269,658	1%	30~60 days	-	-	( 41,996)	1%
	Evergreen Marine (UK) Limited	Subsidiary	Purchases	304,344	1%	30~60 days	-	-	( 44,853)	1%
			Sales	373,578	2%	30~60 days	-	-	982	-
	Evergreen Marine (Singapore) Pte. Ltd.	Other related parties	Purchases	222,310	1%	30~60 days	-	-	( 20,819)	1%
			Sales	837,420	4%	30~60 days	-	-	555	-
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary	Purchases	427,321	2%	30~60 days	-	-	( 18,158)	1%
			Sales	426,997	2%	30~60 days	-	-	91	-
	Evergreen Shipping Agency (Europe) GmbH (EEU)	Subsidiary	Purchases	149,450	1%	30~60 days	-	-	-	-

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine Corporation	Evergreen International S.A.(EIS)	Other related parties	Sales	$ 139,088	1%	30~60 days	$ -	-	$ -	-
	Gaining Enterprise S.A.	Other related parties	Purchases	299,795	1%	30~60 days	-	-	-	-
Taiwan Terminal Services Co.,Ltd.	Evergreen Marine Corp.	The parent	Sales	411,430	100%	30~60 days	-	-	63,763	99%	(Note)
Everport Terminal Services Inc.	Evergreen Marine Corp.	The parent	Sales	USD 22,962	12%	30~60 days	-	-	3,256 USD	11%	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 48,655	26%	30 days	-	-	6,135 USD	20%
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 12,942	7%	30 days	-	-	1,329 USD	4%	(Note)
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 36,381	19%	30 days	-	-	4,685 USD	16%	(Note)
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 17,656	9%	30 days	-	-	2,412 USD	8%	(Note)
Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine Corp.	The parent	Sales	USD 14,244	3%	30~60 days	-	-	616 USD	-	(Note)
			Purchases	USD 14,233	3%	30~60 days	-	-	3) (USD	-	(Note)
	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 19,169	4%	30~60 days	-	-	20 USD	-	(Note)
			Purchases	USD 14,692	3%	30~60 days	-	-	581) (USD	1%	(Note)
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Sales	USD 4,331	1%	30~60 days	-	-	-	-
			Purchases	USD 17,325	4%	30~60 days	-	-	763) (USD	1%
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 23,374	5%	30~60 days	-	-	-	-
			Purchases	USD 5,210	1%	30~60 days	-	-	36) (USD	-
	Evergreen International Corp.	Investee of the Parent Company's major shareholder	Sales	USD 3,405	1%	30~60 days	-	-	148 USD	-
			Purchases	USD 6,755	2%	30~60 days	-	-	-	-
	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 10,332	2%	30~60 days	-	-	20 USD	-	(Note)

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine (Hong Kong) Ltd.	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Purchases	USD 45,414	10%	30~60 days	$ -	-	436) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 17,656	4%	30 days	-	-	2,412) (USD	2%	(Note)
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 4,217	1%	30~60 days	-	-	1) (USD	-
	Master International Shipping Agency Co., Ltd.	Indirect subsidiary of the Parent Company	Purchases	USD 14,047	3%	30~60 days	-	-	2,308) (USD	2%	(Note)
Greencompass Marine S.A.	Evergreen Marine (UK) Limited	Indirect subsidiary of the Parent Company	Sales	USD 16,537	1%	30~60 days	-	-	1,033 USD	1%	(Note)
			Purchases	USD 11,870	1%	30~60 days	-	-	439) (USD	-	(Note)
	Evergreen Marine Corp.	The parent	Sales	USD 28,446	2%	30~60 days	-	-	15 USD	-	(Note)
			Purchases	USD 37,622	3%	30~60 days	-	-	211) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 12,942	1%	30 days	-	-	1,329) (USD	1%	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 39,448	3%	30~60 days	-	-	1,701 USD	1%
			Purchases	USD 12,139	1%	30~60 days	-	-	3,270) (USD	1%
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Sales	USD 9,820	1%	30~60 days	-	-	-	-
			Purchases	USD 17,557	2%	30~60 days	-	-	-	-
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 8,424	1%	30~60 days	-	-	-	-
	Evergreen International Corp.	Investee of the Parent Company's major shareholder	Purchases	USD 6,015	1%	30~60 days	-	-	-	-
	Evergreen Shipping Agency (Europe) GmbH	Indirect subsidiary of the Parent Company	Purchases	USD 4,588	-	30~60 days	-	-	-	-	(Note)
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 14,692	1%	30~60 days	-	-	581 USD	-	(Note)
			Purchases	USD 19,169	2%	30~60 days	-	-	20) (USD	-	(Note)
Evergreen Marine (UK) Limited	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	USD 11,870	2%	30~60 days	-	-	439 USD	-	(Note)

Purchaser/Seller	Counterparty	Relationship with the counterparty	Transaction	Transaction	Transaction	Transaction	Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable (payable)	Notes/accounts receivable (payable)	Footnote (Note 2)
			Purchases/ sales	Amount	Percentage of total purchases/ sales	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Evergreen Marine (UK) Limited	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Purchases	USD 16,537	3%	30~60 days	$ -	-	1,033) (USD	1%	(Note)
	Evergreen Marine Corp.	The Parent	Sales	USD 10,144	2%	30~60 days	-	-	1,523 USD	1%	(Note)
			Purchases	USD 12,452	2%	30~60 days	-	-	33) (USD	-	(Note)
	Everport Terminal Services Inc.	Subsidiary of the Parent Company	Purchases	USD 36,381	7%	30 days	-	-	4,685) (USD	3%	(Note)
	Italia Marittima S.p.A.	Investee of Balsam Investment (NetherLands) N.V.	Purchases	USD 3,505	1%	30~60 days	-	-	185) (USD	-
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	USD 15,555	3%	30~60 days	-	-	342 USD	-
			Purchases	USD 3,858	1%	30~60 days	-	-	1,179) (USD	1%
	Evergreen Shipping Agency (America) Corporation	Investee of the Parent Company's major shareholder	Purchases	USD 9,605	2%	30~60 days	-	-	-	-
	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	USD 45,414	8%	30~60 days	-	-	436 USD	-	(Note)
			Purchases	USD 10,332	2%	30~60 days	-	-	20) (USD	-	(Note)
Evergreen Heavy Industrial Corp.(Malaysia) Berhad	Gaining Enterprise S.A.	Investee of EITC	Sales	MYR 70,763	100%	45 days	-	-	25,523 MYR	100%
Evergreen Shipping Agency (Europe) GmbH	Greencompass Marine S.A.	Indirect subsidiary of the Parent Company	Sales	EUR 4,163	21%	30~60 days	-	-	-	-	(Note)
	Evergreen Marine (Singapore) Pte. Ltd.	Investee of the Parent Company's major shareholder	Sales	EUR 5,269	27%	30~60 days	-	-	937 EUR	2%
	Evergreen Marine Corp.	The Parent	Sales	EUR 4,520	23%	30~60 days	-	-	-	-	(Note)
Master International Shipping Agency Co. Ltd.	Evergreen Marine (Hong Kong) Ltd.	Subsidiary of the Parent Company	Sales	CNY 98,826	100%	30~60 days	-	-	16,343 CNY	100%	(Note)

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 3: Paid-in capital referred to herein is the paid-in capital of parent company.

Evergreen Marine Corporation (Taiwan) Ltd. Receivables from related parties reaching TWD 100 million or 20% of paid-in capital or more June 30, 2020

June 30, 2020	June 30, 2020	June 30, 2020	June 30, 2020	June 30, 2020
Table 5					Expressed in thousands of TWD/thousands of foreign currency (Except as otherwise indicated)
Creditor	Counterparty	Relationship with the counterparty	Balance as at June 30, 2020 (Note 1)	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts	Footnote
					Amount	Action taken
Clove Holding Ltd.	Colon Container Terminal, S.A.	Investee of Clove Holding Ltd. accounted for using equity method	USD 12,235	-	- $	-	- $	- $
Evergreen Heavy Industrial Corp. (Malaysia) Berhad	Gaining Enterprise S.A.	Investee of EITC	MYR 25,523	-	-	-	MYR 25,523	-
Peony Investment S.A.	Clove Holding Ltd.	Subsidiary	USD 19,813	-	-	-	-	-	Note
Peony Investment S.A.	Colon Container Terminal, S.A.	Investee of Clove Holding Ltd. accounted for using equity method	USD 8,207	-	-	-	-	-
Everport Terminal Services Inc.	Evergreen Marine (UK) Limited	Indirectly subsidiary of the Parent Company	USD 4,685	-	-	-	USD 4,083	-	Note
Everport Terminal Services Inc.	Evergreen Marine (Singapore) Pte. Ltd.	Other related party	USD 6,135	-	-	-	USD 5,347	-
Evergreen Marine (Hong Kong) Ltd.	Colon Container Terminal, S.A.	Investee of Evergreen Marine (Hong Kong) Limited accounted for using equity method	USD 4,547	-	-	-	-	-

Note: This transaction was written off when the consolidated financial statements were prepared.

Evergreen Marine Corporation (Taiwan) Ltd. Significant inter-company transactions during the reporting periods For the six-month period ended June 30, 2020

Expressed in thousands of TWD

(Except as otherwise indicated)

Table 6

Table 6				Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)	Expressed in thousands of TWD (Except as otherwise indicated)
Number (Note 1)	Company name	Counterparty	Relationship (Note 2)	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 2 2	Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Evergreen Marine Corporation Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited	Taiwan Terminal Services Co.,Ltd. Greencompass Marine S.A. Greencompass Marine S.A. Greencompass Marine S.A. Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Shipping Agency (Europe) GmbH Everport Terminal Services Inc. Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (UK) Limited Evergreen Shipping Agency (Europe) GmbH Evergreen Marine (Hong Kong) Ltd. Everport Terminal Services Inc. Evergreen Marine (UK) Limited Greencompass Marine S.A. Evergreen Marine (Hong Kong) Ltd.	1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 3 3 3 3 3	Operating cost Shipowner's account - credit Operating revenue Operating cost Shipowner's account - debit Operating revenue Operating cost Shipowner's account - credit Operating revenue Operating cost Operating cost Operating cost Shipowner's account - debit Operating cost Operating cost Operating cost Operating cost Shipowner's account - debit Operating cost Operating revenue	411,430 $ 102,382 1,128,686 853,411 217,328 373,578 304,344 370,095 426,997 427,321 149,450 688,889 100,518 356,118 137,639 575,076 388,266 303,831 496,118 1,362,465	Note 4 " " " " " " " " " " " " " " " " " " "	0.47 0.03 1.29 0.98 0.07 0.43 0.35 0.12 0.49 0.49 0.17 0.79 0.03 0.41 0.16 0.66 0.44 0.10 0.57 1.56

Number (Note 1)	Company name	Counterparty	Relationship (Note 2)		Transaction	Transaction	Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
2 2 2 2 3 3 3 3 4	Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (UK) Limited Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Evergreen Marine (Hong Kong) Ltd. Peony Investment S.A.	Evergreen Marine (Hong Kong) Ltd. Evergreen Shipping Agency (Europe) GmbH Everport Terminal Services Inc. Everport Terminal Services Inc. Greencompass Marine S.A. Everport Terminal Services Inc. Evergreen Shipping Agency (China) Co., Ltd. Evergreen Marine (UK) Limited Clove Holding Ltd.	3 3 3 3 3 3 3 3 3	Operating cost Shipowner's account - credit Operating cost Account payables Operating cost Operating cost Operating cost Shipowner's account - credit Other receivables	309,967 $ 112,422 1,091,474 138,025 440,776 529,682 421,416 139,430 583,684	Note 4 " " " " " " " "	0.35 0.04 1.25 0.04 0.50 0.61 0.48 0.05 0.19

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.
(2) The subsidiaries are numbered in order starting from '1'.

(1) Parent company to subsidiary.
(2) Subsidiary to parent company
(3) Subsidiary to subsidiary

Note 4: Terms are approximately the same as for general transactions.

Evergreen Marine Corporation (Taiwan) Ltd.

Table 7

Expressed in thousands of shares/thousands of TWD

Information on investees (not including investee company of Mainland China)

For the six-month period ended June 30, 2020

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Evergreen Marine Corp.	Peony Investment S.A.	Republic of Panama	Investment activities	14,301,195 $	14,301,195 $	4,765	100.00	27,307,366 $	1,607,717 $	1,624,788 $	Subsidiary of the Company (Note)
	Taiwan Terminal Services Co., Ltd.	Taiwan	Loading and discharging operations of container yards	55,000	55,000	5,500	55.00	53,224	2,366) (	1,301) (	`〃`(Note)
	Everport Terminal Services Inc.	U.S.A	Terminal services	3,001	3,001	1	94.43	1,778,968	118,044	111,467	`〃`(Note)
	Evergreen Marine (Hong Kong) Ltd.	Hong Kong	Marine transportation	6,283,222	6,283,222	6,320	79.00	7,775,366	987,171	737,986	`〃`(Note)
	Evergreen Shipping Agency (Israel) Ltd.	Israel	Shipping agency	9,103	9,103	1,062	59.00	30,680	16,721	9,865	`〃`(Note)
	Charng Yang Development Co.,Ltd.	Taiwan	Development, rental, sale of residential and commercial buildings	320,000	320,000	58,542	40.00	522,864	83,785	33,514	Investee accounted for using equity method
	Evergreen International Storage and Transport Corporation	Taiwan	Container transportation and gas stations	4,840,408	4,840,408	430,692	40.36	8,891,012	365,635	147,568	`〃`
	Evergreen Security Corporation	Taiwan	General security guards services	25,000	25,000	6,336	31.25	107,571	20,923	6,538	`〃`
	EVA Airways Corporation	Taiwan	International passengers and cargo transportation	11,276,823	11,276,823	776,541	16.00	10,959,263	1,834,366) (	293,487) (	`〃`
	Taipei Port Container Terminal Corporation	Taiwan	Container distribution and cargo stevedoring	1,446,196	1,094,073	144,799	27.85	1,481,822	173,982	46,583	`〃`
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	-	3,151	-	-	-	443	39	`〃`
	VIP Greenport Joint Stock Company	Vietnam	Terminal services	178,750	178,750	13,750	21.74	280,132	95,375	20,734	`〃`
Peony Investment S.A.	Clove Holding Ltd.	British Virgin Islands	Investment holding company	1,548,102	1,548,102	10	100.00	2,680,731	2,091	2,091	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Agency (Europe) GmbH	Germany	Shipping agency	244,989	244,989	-	100.00	302,314	15,748	15,748	`〃`(Note)
	Evergreen Shipping Agency (Korea) Corporation	South Korea	Shipping agency	71,470	71,470	121	100.00	45,585	12,446	12,446	`〃`(Note)
	Greencompass Marine S.A.	Republic of Panama	Marine transportation	10,414,110	10,414,110	3,535	100.00	14,732,903	1,177,361	1,177,361	`〃`(Note)
	Evergreen Shipping Agency (India) Pvt. Ltd.	India	Shipping agency	34,666	34,666	100	99.99	166,093	18,518	18,517	`〃`(Note)
	Evergreen Argentina S.A.	Argentina	Leasing	4,124	4,124	150	95.00	41,646	1,431) (	1,360) (	`〃`(Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Peony Investment S.A.	PT. Multi Bina Pura International	Indonesia	Loading and discharging operations of container yards and inland transportation	251,174 $	230,994 $	17	95.03	612,644 $	41,847 $	39,768 $	Indirect subsidiary of the Company (Note)
	PT. Multi Bina Transport	Indonesia	Container repair, cleaning and inland transportation	23,695	23,695	2	17.39	13,473	4,263) (	741) (	`〃`(Note)
	Evergreen Heavy Industrial Corp. (Malaysia) Berhad	Malaysia	Container manufacturing	804,106	804,106	42,120	84.44	901,382	4,975	4,201	`〃`(Note)
	Evergreen Shipping (Spain) S.L.	Spain	Shipping agency	198,717	198,717	6	100.00	198,570	57,432	57,432	`〃`(Note)
	Evergreen Shipping Agency (Italy) S.p.A.	Italy	Shipping agency	69,290	69,290	1	55.00	70,870	378	208	`〃`(Note)
	Evergreen Marine (UK) Limited	U.K	Marine transportation	3,950,664	3,950,664	765	51.00	864,258	159,419	81,304	`〃`(Note)
	Evergreen Shipping Agency (Australia) Pty. Ltd.	Australia	Shipping agency	50,329	50,329	1	100.00	34,900	28,015	28,015	`〃`(Note)
	Evergreen Shipping Agency (Russia) Ltd.	Russia	Shipping agency	24,982	24,982	-	51.00	23,411	45,548	23,229	`〃`(Note)
	Evergreen Shipping Agency (Thailand) Co., Ltd.	Thailand	Shipping agency	66,079	66,079	680	85.00	63,221	25,204	21,424	`〃`(Note)
	Evergreen Agency (South Africa) (Pty) Ltd.	South Africa	Shipping agency	17,116	17,116	5,500	55.00	64,364	15,418	8,480	`〃`(Note)
	Evergreen Shipping Agency (Vietnam) Corp.	Vietnam	Shipping agency	36,265	36,265	-	100.00	428,155	89,032	89,032	`〃`(Note)
	PT. Evergreen Shipping Agency Indonesia	Indonesia	Shipping agency	28,665	28,665	0.441	49.00	99,334	31,386	15,379	Investee company of Peony accounted for using equity method
	Luanta Investment (Netherlands) N.V.	Curaçao	Investment holding company	1,400,507	1,400,507	460	50.00	1,849,171	1,528) (	764) (	`〃`
	Balsam Investment (Netherlands) N.V.	Curaçao	Investment holding company	12,305,042	12,305,042	0.451	49.00	407,923	299,478) (	146,744) (	`〃`
	Evergreen Shipping Agency Co. (U.A.E.) LLC	United Arab Emirates	Shipping agency	61,336	61,336	-	49.00	83,174	91,780	44,972	`〃`
	Greenpen Properties Sdn. Bhd.	Malaysia	Renting estate and storehouse company	12,551	12,551	1,500	30.00	32,128	2,597	779	`〃`
	Evergreen Marine Corp. (Malaysia) SDN.BHD.	Malaysia	Shipping agency	277,342	277,342	500	100.00	921,823	118,505	118,505	Indirect subsidiary of the Company (Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Peony Investment S.A.	Evergreen Marine (Hong Kong) Ltd.	Hong Kong	Marine transportation	78,069 $	78,069 $	80	1.00	98,422 $	987,171 $	9,342 $	Investee company of Peony accounted for using equity method
	Ics Depot Services Snd. Bhd.	Malaysia	Depot services	32,818	32,818	286	28.65	64,901	13,887	3,978	`〃`(Note)
Clove Holding Ltd.	Colon Container Terminal, S.A.	Republic of Panama	Inland container storage and loading	673,456	673,456	22,860	40.00	2,538,757	4,939) (	1,975) (	Investee company of Clove Holding Ltd. accounted for using equity method
	Everport Terminal Services Inc.	U.S.A	Terminal services	191,606	191,606	0.059	5.57	264,619	118,044	6,577	Indirect subsidiary of the Company (Note)
Everport Terminal Services Inc.	Whitney Equipment LLC.	U.S.A	Equipment Leasing Company	5,892	5,892	-	100.00	225,552	9,751	9,751	`〃`(Note)
PT. Multi Bina Pura International	PT. Multi Bina Transport	Indonesia	Container repair cleaning and inland transportation	97,260	97,260	8	72.95	56,519	4,263) (	3,110) (	`〃`(Note)
Evergreen Marine (Hong Kong) Limited	Colon Container Terminal S.A.	Republic of Panama	Inland container storage and loading	459,576	459,576	5,144	9.00	591,655	4,939) (	444) (	Investee company of Evergreen Marine (Hong Kong) Limited accounted for using equity method
	Evergreen Marine (Latin America), S.A.	Republic of Panama	Management consultancy	17,676	2,917	600	100.00	18,293	443	443	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Service (Cambodia) Co., Ltd.	Cambodia	Shipping agency	5,892	5,892	200	100.00	53,038	17,255	17,255	〃(Note)
	Evergreen Shipping Agency (Peru) S.A.C.	Peru	Shipping agency	8,178	8,178	900	60.00	35,668	46,712	28,027	`〃`(Note)
	Evergreen Shipping Agency (Colombia) S.A.S	Colombia	Shipping agency	10,341	10,341	80	75.00	31,820	32,080	24,060	`〃`(Note)
	Evergreen Shipping Agency Mexico S.A. de C.V.	Mexico	Shipping agency	6,753	6,753	44	60.00	20,424	24,538	14,723	`〃`(Note)
	Evergreen Shipping Agency (Chile) SPA.	Chile	Shipping agency	9,392	9,392	2	60.00	24,783	22,515	13,509	`〃`(Note)
	Evergreen Shipping Agency (Greece) Societe Anonyme.	Greece	Shipping agency	7,963	7,963	2	60.00	29,169	19,524	11,715	`〃`(Note)
	Evergreen Shipping Agency (Isrrael) Ltd.	Isrrael	Shipping agency	150	150	18	1.00	520	16,721	167	`〃`(Note)

Investor	Investee (Note 1`、`Note 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Shares held as of June 30, 2020	Net profit (loss) of the investee For the six-month period ended June 30, 2020 (Note 2(2))	Investment income (loss) recognised by the Company For the six-month period ended June 30, 2020 (Note 2(3))	Footnote
				Balance as of June 30, 2020	Balance as of December 31, 2019	Number of shares	Ownership (%)	Book value
Evergreen Marine (Hong Kong) Limited	Evergreen Shipping Agency (Brazil) Ltd.	Brazil	Shipping agency	7,288 $	- $	120	60.00	6,542 $	- $	- $	Indirect subsidiary of the Company (Note)
	Evergreen Shipping Agency Lanka (Private) Ltd.	Lanka	Shipping agency	3,571	3,571	2,160	40.00	10,296	33,338	13,335	Investee company of Evergreen Marine (Hong Kong) Limited accounted for using equity method

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, ‘Initial investment amount’ and ‘Shares held as at June 30, 2020’ should fill orderly in the Company’s (public company’s) information on investees and every
directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.
(2) The ‘Net profit (loss) of the investee for the six-month period ended June 30, 2020’ column should fill in amount of net profit (loss) of the investee for this period.
(3) The‘Investment income (loss) recognised by the Company for the six-month period ended June 30, 2020’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and
recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Evergreen Marine Corporation (Taiwan) Ltd.

Information on investments in Mainland China

For the six-month period ended June 30, 2020

Table 8

Expressed in thousands of TWD

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020	Net income (loss) of the investee for the six-month period ended June 30, 2020	Ownership held by the Company (direct of indirect) (%)	Investment income (loss) recognised by the Company. For the six-month period ended June 30, 2020 (Note 2(2)B)	Book value of investments in Mainland China as of June 30, 2020	Accumulted amount of investment income remitted back to Taiwan as of June 30, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Ningbo Victory Container Co., Ltd.	Inland container transportation, container storage, loading, discharging, repair and related activities	519,942 $	(2)	210,978 $	- $	- $	210,978 $	19,682 $	40.00	7,873 $	305,381 $	- $
Qingdao Evergreen Container Storage & Transportation Co., Ltd.	Inland container transportation, storage, loading, discharging, repair, cleaning and related activities	176,817	(2)	41,740	-	-	41,740	75,820	40.00	30,328	183,281	-
Kingtrans Intl. Logistics (Tianjin) Co., Ltd.	Inland container transportation, storage, loading, discharging, repair, cleaning and related activities	324,217	(2)	278,847	-	-	278,847	22,348	46.20	10,325	190,289	-	(Note)
Ever Shine (Shanghai) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	1,807,596	(2)	2,399,822	-	-	2,399,822	16,941	80.00	23,267) (	3,065,530	-	(Note)
Ever Shine (Ningbo) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	178,897	(2)	265,490	-	-	265,490	182	80.00	174	141,667	-	(Note)
Ever Shine (Shenzhen) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	255,226	(2)	461,947	-	-	461,947	2,065	80.00	2,335) (	385,466	-	(Note)
Ever Shine (Qingdao) Enterprise Management Consulting Co., Ltd.	Management consultancy, self-owned property leasing	206,938	(2)	376,569	-	-	376,569	1,767	80.00	77	234,925	-	(Note)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2020	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020	Net income (loss) of the investee for the six-month period ended June 30, 2020	Ownership held by the Company (direct of indirect) (%)	Investment income (loss) recognised by the Company. For the six-month period ended June 30, 2020 (Note 2(2)B)	Book value of investments in Mainland China as of June 30, 2020	Accumulted amount of investment income remitted back to Taiwan as of June 30, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Evergreen Shipping Agency (China) Co., Ltd.	Shipping agency	20,802 $	(2)	81,952 $	- $	- $	81,952 $	21,509 $	41.60	9,679) ($	14,123 $	- $	(Note)
Company name Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020 Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA) Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA Evergreen Marine Corp. $ 4,117,345 $ 4,660,623 $ 45,184,254
Company name	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Evergreen Marine Corp.	$ 4,117,345	$ 4,660,623	$ 45,184,254

Note: This transaction was written off when the consolidated financial statements were prepared.

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company, Peony Investment S.A. and Evergreen Marine (Hong Kong) Ltd., in the third area, which then invested in the investee in Mainland China.
(3) Others

Note 2: In the ‘Investment income (loss) recognised by the Company for the six-month period ended June 30, 2020’ column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
A. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
B. The financial statements that are audited and attested by R.O.C. parent company’s CPA.
C. Others.

Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Evergreen Marine Corporation (Taiwan) Ltd. Major shareholders information

For the six-month period ended June 30, 2020

Table 9

Name of major shareholders	Shares	Shares
	Name of shares held	Ownership (%)
Evergreen International S.A.(EIS)	391,786,816	8.14%
Chang, Kuo-Hua	319,646,157	6.64%
Evergreen International Corp.	262,411,866	5.45%

Note 1: The major shareholders information was from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form Note 1: which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by Taiwan Depository & Clearing Corporation. Note 1: The share capital which was recorded in the financial statements may differ from the actual number of shares issued in dematerialised form because of a Note 1: differenent calculation basis.
Note 2: If the aforementioned data contains shares which were kept in trust by the shareholders, the data disclosed was the settlor’s separate account for the fund set by the trustee. Note 2: As for the shareholder who reports share equity as an insider whose shareholding ratio is greater than 10% in accordance with Securities and Exchange Act, the shareholding Note 2: ratio includes the self-owned shares and trusted shares, at the same time, persons who have power to decide how to allocate the trust assets. Note 2: For the information of reported share equity of insider, please refer to Market Observation Post System.

AI assistant

EMC — Interim / Quarterly Report 2020

52158_rns_2020-12-21_5043a9a1-d7d3-45be-8682-5ee2fc554cb2.pdf

INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Other Matter – Review Reports of Other Independent Accountants

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

EVERGREEN MARINE CORPORATION (TAIWAN) LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. HISTORY AND ORGANISATION

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(3) Basis of consolidation

B. Subsidiaries included in the consolidated financial statements:

EMU

Statements of cash flows

(4) Foreign currency translation

(5) Classification of current and non-current items

(6) Cash equivalents

(8) Financial assets at fair value through other comprehensive income

(9) Financial assets at amortised cost

(10) Notes, accounts and other receivables

(15) Investments accounted for using equity method / associates

(17) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

(18) Investment property

(19) Intangible assets

A. Computer software

(20) Impairment of non-financial assets

(21) Borrowings

(22) Accounts payable

(23) Financial liabilities at fair value through profit or loss

(24) Bonds payable

(25) Derecognition of financial liabilities

(26) Offsetting financial instruments

(27) Hedge accounting

C. Cash flow hedges

(28) Employee benefits

(a) Defined contribution plans

(29) Income tax

(30) Dividends

(32) Business combinations

(2) Critical accounting estimates and assumptions

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

(2) Financial assets at fair value through other comprehensive income

(3) Financial assets at amortised cost

(4) Notes and accounts receivable

(5) Inventories

(6) Other current assets

A. Shipowner’s accounts:

B. Agency accounts:

(7) Investments accounted for using equity method

B. Associates

Balance sheet

Statement of comprehensive income

Revenue

EVA Airways Corporation

(8) Property, plant and equipment, net

－ (9) Leasing arrangements lessee/ Financial liabilities for hedging

(b) Other equity - cash flow hedge reserve

(10) Investment property, net

(11) Other non-current assets

(12) Other current liabilities

(14) Long-term loans

(15) Other non-current liabilities

(16) Pension

(18) Capital surplus

(19) Retained earnings

(20) Other equity items

(21) Operating revenue

EMC Interim / Quarterly Report 2020

(17) Leasing arrangements (lessee) `－` right-of-use assets/ lease liabilities

`－` (9) Leasing arrangements lessee/ Financial liabilities for hedging